empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
23.12.2024 06:36 AM
GBP/USD Overview. Weekly Preview. The British Pound Relies on Holiday Calm
Open trading account Open demo account

This image is no longer relevant

The GBP/USD currency pair showed a significant rise on Friday, which lacked any fundamental justification. The only report in the UK—the retail sales data—once again disappointed, coming in weaker than forecasts. However, this did not prevent the British pound from rising once again in a manner and at a time when it logically should not have. One could speculate about the formation of a "Double Bottom" pattern (which also appears on the EUR/USD pair). However, we remind traders that such patterns rarely perform as expected. Market makers often exploit them to trigger the Stop Loss orders of retail traders. In other words, this pattern is visible to every market participant, leading many traders to open long positions in hopes of profiting from the setup. Naturally, these traders place their Stop Losses below the Double Bottom. Therefore, big players, with their significant volumes, can quickly "sweep" these Stop Losses.

Of course, the above is just speculation. We cannot predict with certainty how large players will act. However, manipulation in the forex market is commonplace. We tend not to trust obvious patterns and signals because they are apparent to everyone. This week, unfortunately, trading decisions will need to rely solely on technical factors. The GDP report for Q3 (third estimate) will be published in the UK, while data on durable goods orders and unemployment claims are scheduled in the US. These are not critical reports, and there are simply too few to influence the pair's macroeconomic movements drastically.

In the 4-hour timeframe, the pair trades below the moving average, indicating a short-term downtrend. Despite the Double Bottom, the pair could continue to decline this week. If the price consolidates above the moving average, a rise in the British currency might be expected. But on what basis would this rise occur, given the lack of fundamental and macroeconomic drivers? The downtrend remains intact on higher timeframes, both on the daily and weekly charts. Therefore, we still expect the British currency to decline long-term. Naturally, the fundamental background could change, forcing a reassessment of the primary outlook. However, there are no reasons to revise the current plan.

This image is no longer relevant

The average volatility of the GBP/USD pair over the last five trading days is 123 pips, which is considered "high" for this pair. Therefore, on Monday, December 23, we expect the pair to trade within the range of 1.2441–1.2687. The higher linear regression channel is directed downward, indicating a prevailing downtrend. The CCI indicator recently re-entered the oversold zone, but as we have repeatedly warned, the pound ultimately seeks to resume its downward trend. Any oversold condition in a downtrend typically signals only a correction. The bullish divergence on the CCI also hints at a potential correction.

Nearest Support Levels:

  • S1 – 1.2451

Nearest Resistance Levels:

  • R1 – 1.2573
  • R2 – 1.2695
  • R3 – 1.2817

Trading Recommendations:

The GBP/USD currency pair remains in a downtrend but continues to correct. Long positions are still not considered viable, as we believe the market has already priced in all growth factors for the British currency multiple times. For traders employing "pure" technical analysis, long positions may be taken with a target of 1.2817, provided the price consolidates above the moving average line. However, short positions are much more relevant now, with targets at 1.2451 and 1.2441.

Explanation of Illustrations:

Linear Regression Channels help determine the current trend. If both channels are aligned, it indicates a strong trend.

Moving Average Line (settings: 20,0, smoothed) defines the short-term trend and guides the trading direction.

Murray Levels act as target levels for movements and corrections.

Volatility Levels (red lines) represent the likely price range for the pair over the next 24 hours based on current volatility readings.

CCI Indicator: If it enters the oversold region (below -250) or overbought region (above +250), it signals an impending trend reversal in the opposite direction.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Forecast
USD/JPY: Simple Trading Tips for Beginner Traders – April 4th (U.S. Session) The price test of 146.16 occurred at a moment when the MACD indicator had already moved significantly above the zero line, which limited the pair's upward potential within a bearish
Jakub Novak
20:08 2025-04-04 +02:00
1960
Forecast
GBP/USD: Simple Trading Tips for Beginner Traders – April 4th (U.S. Session) The price test of 1.3077 occurred at a time when the MACD indicator had already moved significantly below the zero line, which limited the pair's further downward potential. Following recent
Jakub Novak
20:03 2025-04-04 +02:00
1570
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Gold is attracting some sellers for the second day in a row, despite the absence of any clear fundamental catalyst for a decline. Most likely, this is due to trading
Irina Yanina 11:50 2025-04-04 UTC+2

Old market rules broken

Someone is not telling the truth. Donald Trump insists that everything is going well and that the markets will flourish. But the S&P 500 just posted its worst 10-week start
Marek Petkovich 11:10 2025-04-04 UTC+2

The Growth of the Gold Price Has Stopped. What Is the Reason? (There Is a Possibility of a Local Corrective Pullback in #SPX and Bitcoin)

The global market crash triggered by the announcement of sweeping tariffs personally introduced by the U.S. President continues into Asian trading sessions. While the decline has slowed, there is still
Pati Gani 09:09 2025-04-04 UTC+2

What to Pay Attention to on April 4? A Breakdown of Fundamental Events for Beginners

Only a few macroeconomic events are scheduled for Friday, but they may trigger a new storm. The market has not yet recovered from Wednesday evening's events when Trump imposed trade
Paolo Greco 07:29 2025-04-04 UTC+2

GBP/USD Pair Overview – April 4: Does Anyone Still Care About Nonfarm Payrolls and Unemployment?

The GBP/USD currency pair posted a 300-pip upward move from Wednesday evening through Thursday. Given the current situation, this may not end the dollar's decline. To be honest, the fall
Paolo Greco 06:07 2025-04-04 UTC+2

EUR/USD Pair Overview – 4: Trump's Tariffs Crash the Dollar Once Again

The EUR/USD currency pair gained nearly 300 pips between Wednesday and Thursday. We saw a repeat of the situation in early March when the U.S. dollar fell by 400 pips
Paolo Greco 06:06 2025-04-04 UTC+2

The Dollar Shot Itself in the Foot

Don't create a problem for someone else; you might get caught in it yourself. Donald Trump sought to leverage the United States' leading position in the global economy by announcing
Marek Petkovich 00:50 2025-04-04 UTC+2

EUR/USD. Nonfarm Payrolls and the Greenback

Can strong Nonfarm Payrolls help the dollar? This question is complicated, as the market is currently too shaken by Donald Trump's new tariffs. Traditional fundamental factors have been pushed into
Irina Manzenko 00:46 2025-04-04 UTC+2

USD/JPY – Analysis and Forecast

The Japanese yen is showing strong gains amid broad-based selling of the U.S. dollar, keeping the USD/JPY pair below the key psychological level of 147.00. Investor concerns over the potential
Irina Yanina 18:22 2025-04-03 UTC+2

Top analytics

Relevance up to 08:00 UTC--4
GBP/USD: Simple Trading Tips for Beginner Traders – April 4th (U.S. Session)
20:03 2025-04-04
Forecast
Relevance up to 08:00 UTC--4
GBP/USD: Trading Plan for the U.S. Session on April 4th (Review of Morning Trades)
19:55 2025-04-04
Trading plan
Relevance up to 08:00 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders – April 4th (U.S. Session)
20:08 2025-04-04
Forecast
Relevance up to 08:00 UTC--4
EUR/USD: Simple Trading Tips for Beginner Traders – April 4th (U.S. Session)
20:00 2025-04-04
Forecast
Relevance up to 08:00 UTC--4
EUR/USD: Trading Plan for the U.S. Session on April 4th (Review of Morning Trades)
19:52 2025-04-04
Trading plan
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.