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Analysis of previous deals:
30M chart of the GBP/USD pair
The GBP/USD pair traded with low volatility and in different directions on the 30-minute timeframe on Tuesday. It was very similar to the euro/dollar pair. But if the EUR/USD was in a blatant flat for most of the day, then the pound/dollar still tried to show some hints of a trend movement within the day (not to be confused with the general trend, which is not there at all right now). After the quotes left the descending channel, we have already reiterated that under these circumstances this does not mean that an upward trend would form. Therefore, we also do not recommend tracking any signals from the MACD indicator on the 30 minute timeframe. The pound/dollar pair as a whole continues to be within the horizontal channel of 1.4100-1.4220. No important macroeconomic statistics were released yesterday.
5M chart of the GBP/USD pair
The picture of the pair's movement on the 5-minute timeframe, as usual, is much more complicated. Most of the trades of the past day were held along the same level - 1.4143, around which a whole bunch of different signals were formed, and among them - not a single correct one. It was more difficult to filter deals here than for the EUR/USD pair. Nevertheless, the first two sell signals should have implied what to expect from the pair during the day. At first, the price surpassed the 1.4143 level, and novice traders could open short positions here. However, the price could not continue the upward movement, so it immediately returned to the level of 1.4143 and rebounded from it, and again literally 15 minutes later. After that, it settled above the level of 1.4143. It turns out that the first three sell signals were false. Traders suffered a 12 point loss, but they shouldn't have traded from 1.4143 on that day. And the price did not reach other levels during the day, therefore, no other signals were generated. So we can say that the beginners got off very easily, since such a move could have resulted in much larger losses.
Trading tips for Wednesday:
At this time, the pound/dollar pair returned to the horizontal channel of1.4100-1.4220 on the 30-minute timeframe. Therefore, we recommend not tracking signals from the MACD indicator until the trend movement is restored. The important levels on the 5 minute timeframe are 1.4111, 1.4165, 1.4191 and 1.4219. We recommend trading with them. The price can bounce off them or overcome 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. When passing 20 points in the right direction, we recommend setting Stop Loss to breakeven. There are no major events or publications scheduled for Wednesday in the UK and US. So today novice traders do not have to pay much attention to the macroeconomic or fundamental background. But Thursday will be much more interesting from a fundamental point of view.
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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