FX.co ★ EUR/USD and GBP/USD trading plan for beginners on January 20, 2023

Details of the economic calendar on January 19

Weekly jobless claims data came out slightly better than expected, but the overall figure still reflected an increase in their numbers.

Statistics details:

The volume of continuing claims for benefits rose from 1.630 million to 1.647 million.

The volume of initial claims for benefits fell from 205,000 to 190,000.

Analysis of trading charts from January 19

EURUSD has been moving sideways during the entire trading week at the peak of the upward cycle. This price movement indicates the process of accumulation of trading forces, otherwise the market would have a corrective movement, which was brewing at the beginning of the week.

GBPUSD temporarily returned to the level of 1.2300 during the technical pullback from the local high of December, where a rebound occurred. This price fluctuation is indicative of the continued upward trend among traders in the market.

Economic calendar for January 20

Since the opening of the European session, data on UK retail sales have been published. The rate of decline was estimated to slow down from -5.7% to -4.1%, but actual data showed that the rate of decline accelerated to -5.8%, which negatively affected the value of the British pound.

EUR/USD trading plan for January 20

Based on the structure and tact of price movement, we can assume that the current flat is in the finishing phase. Thus, a long stop may well serve as a lever for new speculative price jumps.

The optimal strategy is considered the method of outgoing momentum, which in the theory of technical analysis can indicate the subsequent path of the price.

We concretize the above:

The downward move will be relevant after holding the price below 1.0770 in a four-hour period. This step can lead to the formation of a full-size correction.

The upward movement of the currency pair is considered in case of a stable holding of the price above the value of 1.0880 in a four-hour period. This move will indicate a continuation of the upward trend.

GBP/USD trading plan for January 20

In order for a technical signal about the prolongation of the upward cycle to appear, the quote needs to stay above the value of 1.2450 for at least a four-hour period.

Otherwise, it allows an amplitude move within 1.2300/1.2440.

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.