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Analysis of previous deals:
30M chart of the GBP/USD pair
The GBP/USD pair tried to continue its upward movement on the 30-minute timeframe and overcome its 3-year highs last Friday, but then it stopped just a few points away from them and started to fall. Take note that the influence of macroeconomic reports on the pair's movement was very strong last Friday, although this has rarely happened recently. Nevertheless, the pound's strengthening in the morning was associated with positive data on retail sales and business activity indices in the UK, and further strengthening of the dollar - with good reports from the US. The quotes are already close to the upward trend line. So today the pair may continue to correct to this line and might even try to overcome it. But as long as the price is above the trend line, buy signals should be considered on the 30-minute timeframe.
5M chart of the GBP/USD pair
We got rid of all the unnecessary levels on the 5-minute timeframe, and the resulting picture turned out to be one that was not the most welcoming. The problem is that as high as the pound is now, it has not been so for a long time (about 3 years). Therefore, many levels that are now used in trading were actually formed several years ago. In addition, some levels are canceled, some have to be replaced. So, there were several signals that deserved attention last Friday - they were all formed around the level of 1.4181, which we decided to remove at the end of the day and we no longer considered it. However, almost all signals of the day were formed when reports were published either in the UK or in the US. This can be clearly seen from the place where the checkboxes are located in the chart, which shows when the reports were published on Friday. That is, all the key breakouts of the day were just made under the impression of the market from the statistics. We recommend that novice traders do not trade when important reports are released. Or trade with maximum caution, with the set Stop Loss. Thus, with a strong desire, it was possible to earn several dozen points on Friday, nevertheless the movements were quite good, but we believe that this is just the case when there was no need to risk in vain.
Trading tips for Monday:
The upward trend is currently maintained on the 30-minute timeframe, supported by an upward trend line. Thus, it is recommended to continue to consider long positions and look for buy signals at this TF. The MACD indicator is below the zero level, but at the same time it is already directed to the upside. Therefore, you need to wait for new buy signals to form during the day. The important levels on the 5 minute timeframe are 1.4081, 1.4102, 1.4129 and 1.4238. The price can bounce off them or surpass them. As before, we set Take Profit at a distance of 40-50 points. At the 5M TF, you can use all the nearest levels as targets, but then you need to take profit, taking into account the strength of the movement. We recommend setting Stop Loss to breakeven when passing 20 points in the right direction. Several important events appeared on the UK calendar on Monday. In particular, parliamentary hearings on the report of the Bank of England on monetary policy and the speech of the Governor of the Bank of England. In addition, several other members of the Bank of England's Monetary Committee will speak. And so you are advised to be careful today.
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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