FX.co ★ EUR/USD and GBP/USD trading plan for beginners on January 17, 2023

Details of the economic calendar on January 16

The economic calendar was traditionally empty on Monday. No important reports were published in the EU, the United Kingdom, and the Unites States.

Martin Luther King Day was celebrated in the United States. For this reason, banks, funds, and stock exchanges were closed.

Analysis of trading charts from January 16

EURUSD reached the 1.0800 level during the pullback stage, where there was an amplitude move within 70 pips. In fact, the market remains in an upward mood, otherwise there would be a full-blown correction.

GBPUSD reduced the volume of long positions during the price convergence with the 1.2300 resistance level. As a result, there was a pullback of about 100 pips, which eventually turned into a stagnation.

Economic calendar for January 17

Since the opening of the European session, data on the UK labor market have been published, which came out without any fundamental changes. Unemployment in the country remained at 3.6%. Employment increased by 27,000, while jobless claims rose by 19,700.

Expectations coincided with the forecast; there is no reaction in the market.

EUR/USD trading plan for January 17

Presumably, the 1.0800/1.0870 amplitude will focus the market on itself only for a while. As a result, the stagnation will end with an impulse emanating from the stagnation, which will indicate one of the possible scenarios.

The first scenario considers the prolongation of the current upward cycle in the market in case of a stable holding of the price above the value of 1.0880 in a four-hour period.

The second scenario considers the transition from a pullback stage to a full correction if the price holds below 1.0770 in a four-hour period.

GBP/USD trading plan for January 17

Stagnation possibly serves as a process of accumulation of trading forces, which can become a lever for new price jumps. The 1.2150 level serves as a variable support, while the resistance is at 1.2300.

In this situation, cardinal changes will occur only after the price stays outside one or another control level for at least a four-hour period.

What's on the charts

The candlestick chart type is white and black graphic rectangles with lines above and below. With a detailed analysis of each individual candle, you can see its characteristics relative to a particular time frame: opening price, closing price, intraday high and low.

Horizontal levels are price coordinates, relative to which a price may stop or reverse its trajectory. In the market, these levels are called support and resistance.

Circles and rectangles are highlighted examples where the price reversed in history. This color highlighting indicates horizontal lines that may put pressure on the asset's price in the future.

The up/down arrows are landmarks of the possible price direction in the future.