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Analysis of previous deals:
30M chart of the GBP/USD pair
The GBP/USD pair continued to trade higher on the 30-minute timeframe on Tuesday, but this time the upward movement was very weak. Nonetheless, it was still present. You can see through the chart that there was practically no correction after the strong move on Thursday and Friday, which suggests that buyers are not retreating from the market and continue to hold open long positions. At the moment, there is an undoubted upward trend for the pound/dollar pair, but at the same time there is neither a trend line nor an upward channel that would provide guidance for movement and corrections. Nevertheless, novice traders were advised to consider buy signals from the MACD indicator and it was formed today. Unfortunately, due to the low volatility, it was not possible to make money on this signal. To be more precise, the pair went up after its formation by only 24 points, which was enough to place a Stop Loss order on a trade at breakeven. Thus, novice traders could no longer receive a loss on a long position. There hasn't been a single important publication during the day. A speech by the head of the Bank of England Andrew Bailey was planned, but this event did not give any new and important information to the markets.
5M chart of the GBP/USD pair
The picture is even more "expressive" on the 5-minute timeframe. Firstly, the nature of the pair's movement is clearly visible here. Almost flat with low volatility. Therefore, it was very difficult to make money with this pair today. Secondly, more signals were formed here, exactly one. In principle, they are immediately visible even without our circles in the chart. This is a rebound and breakthrough of 1.4157. Moreover, if the first signal could still be worked out by a short position, then the second one clearly did not follow, since it had already become clear that the pair was in a flat by the time it was formed, and the matter was moving smoothly towards the night, that is, the volatility and activity of the pair may decrease even more. Short positions should have been opened on the first signal, but the price went down after it was formed by only 29 points, which was again enough to set Stop Loss at breakeven, but not to make a profit: the nearest target level of 1.4081 was not reached, 40 points required for Take Profit are not passed.
Trading tips for Wednesday:
There is an upward trend on the 30-minute timeframe at this time. However, the movement is still too strong and can be replaced by an equally strong fall at any time. There is no trend line at this time, and the movement is practically recoilless, so the MACD indicator does not always have time to discharge to the zero level in order to form a new strong buy signal. Therefore, novice traders need to wait for a new round of correction and discharge of the indicator to the zero level tomorrow. The important levels on the 5 minute timeframe are 1.4081, 1.4157, 1.4181 and 1.4238. The price can bounce off them or overcome them. As before, we set Take Profit at a distance of 40-50 points. You can also use all the nearest levels as targets, but then you need to take the profit, taking into account the strength of the movement, so as not to close the deal too early. When passing 20 points in the right direction, we recommend setting Stop Loss to breakeven. The UK is set to publish important data on GDP for March and for the first quarter, as well as a report on industrial production and a speech by the Governor of the Bank of England Andrew Bailey. And in the United States - the most important report on inflation will be released. Thus, potentially tomorrow there will be very volatile trades, we recommend trading very carefully, especially during this or that event.
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.
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