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Analysis of previous deals:
30M chart of the GBP/USD pair
The GBP/USD pair was once again rising on the 30-minute timeframe during the first trading day of the week. However, in our last review, we advised you not to consider the signals from the MACD indicator, since the pair has recently been moving within the horizontal channel. However, a new upward trend line was formed yesterday, which serves as a guideline for traders, and secondly, the pair surpassed two rather important levels 1.4219 and 1.4232 and now the chances of succeeding growth have become much higher. Therefore, everything is going according to plan, which we have repeatedly voiced. The pound continues to ignore everything it can. There is no fundamental background - the pound is rising. Bad fundamental background - the pound is growing. We believe that it will continue to grow further in 2021. At least now, until the pair's quotes settle below the new upward trend line, one should not count on a serious fall.
5M chart of the GBP/USD pair
The GBP/USD pair traded almost perfectly on the 5-minute timeframe yesterday. There were movements, reaching important levels, there were signals, and there was profit. I would like to immediately note that there were no macroeconomic reports yesterday, either in the UK or in the US. Thus, novice traders had nothing to pay attention to during the day. Consequently, one should trade exclusively on technique. And the technique formed only two signals during the day, one of which should be ignored. The first buy signal is a perfect rebound off the 1.4165 level. It should have been worked out with long positions. A few hours after its formation, the pair dropped to almost the same level, but Stop Loss at that time was not set at breakeven, so the deal simply remained open all this time until the price reached the nearest target - the level of 1.4210. It should also be noted that the quotes went up by 40 points. Therefore, the deal could be closed either manually at about 1.4210, or by Take Profit. In any case, 40 points of profit. But the signal to sell in the form of a price rebound from 1.4210 should not have been worked out, since it was approaching evening and there was very little time left to make a profit on this deal. But even if the newcomers started selling here, they still stayed a few points in profit.
Trading tips for Tuesday:
At this time, the upward trend has recovered on the 30-minute timeframe. A new uptrend line has been formed. Therefore, we recommend tracking buy signals from the MACD indicator again. At this time, it is too high, so it needs to be discharged to zero or so. The important levels on the 5 minute timeframe are 1.4165, 1.4210, 1.4219 and 1.4232. The price can bounce off them or go beyond them. As before, we set Take Profit at a distance of 40-50 points. At 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. When passing 20 points in the right direction, we recommend setting Stop Loss to breakeven. The UK Manufacturing PMI is set to be published on Tuesday. A similar report will be released in America. In addition, Bank of England Governor Andrew Bailey will deliver a speech.
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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