Analytics and trading signals for beginners. How to trade GBP/USD on February 23? Analysis of Monday. Getting ready for Tuesday

Trading 22 Fév 2021 Commentaire »

Hourly chart of the GBP/USD pair

analytics6033f9a99937c.jpg

After a slight correction, the GBP/USD resumed its upward movement on Monday. Thus, the pound/dollar pair is still facing an upward trend, therefore long positions remain a priority. Unfortunately, buy signals are not often generated lately. This is because the nature of the current upward movement is not entirely standard. Recently, the price has often been generating false signals, but a strong upward trend remains. Thus, it is often impossible to open trading positions for the pound. However, it was still possible to do this on Monday, since the MACD indicator came close to the zero level during the day, around which it turned upward, forming a buy signal. This signal is circled in the chart. Novice traders could open long positions at 1.4024, so they are currently in profit of about 60 points. This is a great result. You can close this position right now, as the profit level is quite good. You can wait for the MACD indicator to turn down.

No major reports released in the UK and the US on Monday. Not a single important event that could provoke an upward movement. However, the markets do not need any news or data to buy the pound in recent months. We have already repeatedly said that the fundamental and macroeconomic backgrounds do not affect the pair's movements in any way. The speculative growth continues. This fact must be taken into account when analyzing the currency pair. This factor explains the frequent formation of false signals and ignorance of macroeconomic reports.

A fairly important indicator of the unemployment rate will be released in the UK on Tuesday, as well as less important reports on claims for unemployment benefits and wages. However, we believe that these reports will be ignored. Thus, the nature of the pair's movement will most likely remain the same on Tuesday. We still recommend that you pay more attention to technical factors than others. Also, the pair may be strongly influenced by the news of the approval by the US Congress of a new stimulus package worth 1.9 trillion dollars. However, it is impossible to predict when such news will go to the media.

Possible scenarios on February 23:

1) Long positions are relevant since a new upward trend line has formed. Thus, novice traders are advised to wait for a downward correction and a buy signal in the form of an upward reversal of the MACD indicator or a price rebound from the trend line. The targets in this case will be located at a distance of 50-60 points from the entry point.

2) Short positions have lost their relevance again, therefore, in order to be able to consider them, you need to wait for the price to overcome the upward trend line. Even if it happens tomorrow, it is unlikely that the pound will lose much after this event. At the moment, the price and the trend line are separated by about 180 points.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.

The material has been provided by InstaForex Company - www.instaforex.com

Belgium Business Confidence Improves In February

Trading 22 Fév 2021 Commentaire »

Belgium's business confidence rose in February, boosted by improvements in all sectors, survey data from the National Bank of Belgium showed Monday. The business confidence index climbed to -4.4 from -7.5 in January. Morale improved strongly in the business services and trade sectors on more positive assessment of the demand outlook. The corresponding indexes rose by more than 6 percentage points.

The index for the construction sector rose about 6 percentage points on favorable assessments of order books and the outlook for business activity. Confidence strengthened modestly in the manufacturing sectors as more companies assessed their stock levels higher than normal.


The material has been provided by InstaForex Company - www.instaforex.com

U.S. Leading Economic Index Climbs More Than Expected In January

Trading 22 Fév 2021 Commentaire »

Suggesting economic growth should improve gradually over the first half of 2021, the Conference Board released a report on Monday showing a bigger than expected increase by its index of leading U.S. economic indicators in the month of January.

The Conference Board said its leading economic index climbed by 0.5 percent in January after rising by an upwardly revised 0.4 percent in December.

Economists had expected the leading economic index to rise by 0.3 percent, matching the increase originally reported for the previous month.

"As the vaccination campaign against COVID-19 accelerates, labor markets and overall growth are likely to continue improving through the rest of this year as well," said Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board.

He added, "The Conference Board now expects the U.S. economy to expand by 4.4 percent in 2021, after a 3.5 percent contraction in 2020."

The bigger than expected increase by the leading economic index reflected positive contributions from seven of the ten indicators that make up the index.

Building permits, average weekly manufacturing hours, and the ISM New Orders Index were among the biggest positive contributors.

The Conference Board said the coincident economic index also edged up by 0.2 percent in January following a 0.1 percent uptick in December.

Meanwhile, the report said the lagging economic index fell by 0.6 percent in January after climbing by 0.5 percent in the previous month.


The material has been provided by InstaForex Company - www.instaforex.com

*U.S. Leading Economic Index Climbs 0.5% In January

Trading 22 Fév 2021 Commentaire »

U.S. Leading Economic Index Climbs 0.5% In January


The material has been provided by InstaForex Company - www.instaforex.com

*Belgium Feb Business Confidence -4.4 Vs. -7.5 In January

Trading 22 Fév 2021 Commentaire »

Belgium Feb Business Confidence -4.4 Vs. -7.5 In January


The material has been provided by InstaForex Company - www.instaforex.com

German Economy Set To Resume Recovery: Bundesbank

Trading 22 Fév 2021 Commentaire »

The German economy is likely to recover from this spring after an estimated contraction in the first quarter of 2021, Bundesbank said in its monthly report released Monday.

The bank noted that the second wave of Covid-19 pandemic thwarted Germany's economic recovery at end of 2020. Economic activity was still almost 4 percent down on the pre-crisis level of the fourth quarter of 2019.

Further, the bank said consumer prices surged in January due to the extensive adjustments to the expenditure weights underlying the harmonized index of consumer prices.


The material has been provided by InstaForex Company - www.instaforex.com

*German Economy To Recovery In Spring: Bundesbank

Trading 22 Fév 2021 Commentaire »

German Economy To Recovery In Spring: Bundesbank


The material has been provided by InstaForex Company - www.instaforex.com

Pound Rises As U.K. PM To Unveil Roadmap To Ease Lockdown

Trading 22 Fév 2021 Commentaire »

The pound advanced against its major counterparts in the European session on Monday, as investors await a roadmap out of lockdown set to be announced by Prime Minister Boris Johnson in a speech to Parliament later today.

The UK PM's office announced that the four conditions to ease restrictions are met, enabling the government to proceed with the first stage of reopening the economy from March 8.

All schools in England will reopen on March 8, with outdoor after-school sports and activities allowed.

Outdoor recreation between two people will also be permitted from the same date.

From March 9, outdoor gatherings of up to a maximum of six people or two households will be allowed.

Tennis courts, golf courses and other outdoor sport facilities are expected to be allowed from the same date.

The pound was up against the franc, at a 1-year high of 1.2630. Immediate resistance for the pound is seen around the 1.28 level.

The pound appreciated to 148.29 against the yen, its biggest level since March 2019. Next key resistance for the pound is seen around the 150.00 level.

Data from the Bank of Japan showed that Japan's services producer prices declined for the fourth straight month in January.

The services producer price index fell 0.5 percent year-on-year in January, following a 0.3 percent decline in December. This was the fourth consecutive month of decline.

After falling to 0.8661 at 2:15 am ET, the pound spiked higher to near a 1-year high of 0.8636 against the euro. Should the pound rises further, 0.85 is likely seen as its next resistance level.

Survey results from ifo Institute showed that German business confidence strengthened in February.

The business confidence index rose to 92.4 from 90.3 in the previous month. This was better than the economists' forecast of 90.5.

The pound rose back to 1.4044 versus the dollar, on track to pierce its Asian session's nearly a 3-year high of 1.4053. The pound is seen finding resistance around the 1.42 level.


The material has been provided by InstaForex Company - www.instaforex.com

February 22, 2021 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 22 Fév 2021 Commentaire »

analytics6033d8ca39900.jpg

Recently, the GBPUSD pair looked overbought while consolidating around the price-levels of 1.3700.

Sideway movement with slight bullish tendency was recently demonstrated while approaching these price levels around 1.3700-1.3750.

Bearish pullback was recently demonstrated. However, the GBP/USD pair has failed to maintain bearish decline.

Instead, Another temporary bullish movement was expressed above the previous WEEKLY High (1.3700).

Further upside movement was expected towards the upper limit of the current movement channel around 1.4000 where bearish rejection and a possible SELL Entry are suggested.

Short-term outlook can turn into bearish if only the GBP/USD pair could break below and maintain movement below 1.3900.

If so, a quick bearish decline towards 1.3400 would be expected.

The material has been provided by InstaForex Company - www.instaforex.com

February 22, 2021 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 22 Fév 2021 Commentaire »

analytics6033d8bebbbc9.jpg

Recently, the EURUSD pair looked overbought while approaching the price levels of 1.2250 (138% Fibonacci Level).

That's why, conservative traders were advised to look either for SELL Positions around the previous price levels at 1.2330 (150% Fibonacci Level) in the previous article.

Recently, Bearish closure and persistence below 1.2160 was needed to abort the ongoing bullish momentum. This allowed the recent bearish movement to pursue towards 1.2050 which failed to offer sufficient bullish pressure.

The price zone around 1.2000 provided temporary bullish SUPPORT for the EURUSD. However, lack of bullish momentum was recently demonstrated. That's why, we were waiting for a bearish continuation Pattern.

Bearish persistence below 1.2000 enhanced temporary bearish movement towards 1.1960 where significant bullish rejection was expressed.

That's why, the recent bullish spike has pursued towards 1.2150 - 1.2175 (backside of the broken channel limit) where bearish rejection and a valid SELL Entry are anticipated.

Initial Bearish target would be located around 1.2020 while S/L should be placed above 1.2200

The material has been provided by InstaForex Company - www.instaforex.com