06.02.202606:59 Forex Analysis & Reviews: How to Trade the GBP/USD Currency Pair on February 6? Simple Tips and Trade Analysis for Beginners

Trade Analysis of Thursday:

1H Chart of GBP/USD

The GBP/USD pair continued its downward movement on Thursday, but it was not straightforward. First, it should be noted that there was only one significant event for the GBP yesterday—the Bank of England meeting. It would be reasonable to assume that market movements would begin after the announcement of the meeting results. However, nothing of the sort happened. The British pound started to drop even during the night, fell right up to the BoE meeting, and continued its decline after the results were announced. While we can understand the pound's fall after the meeting, the movement downward before the meeting is harder to explain. Let's take a closer look at the BoE meeting itself. The central bank made a decision exactly as the market expected—to keep the key rate unchanged at 3.75%. However, four members of the Monetary Policy Committee voted for a rate cut instead of the two that were forecasted. This indicates a more "dovish" stance by the central bank, which led to a fall in the British currency, even though the BoE did not change rates. A full downward trend has formed on the hourly timeframe, supported by a trend line.

5M Chart of GBP/USD

On the 5-minute timeframe, a sell signal formed overnight as the British pound began to decline. The pair consolidated below the 1.3643-1.3652 area and remained in a downward trend for most of the day. During the American trading session, the area between 1.3529 and 1.3543 was worked twice. We also removed the intermediate range 1.3574-1.3590, as it is no longer functional. Signals were forming around this area yesterday, but during the announcement of the BoE meeting results. Therefore, it was not worth acting on them due to the high risks.

How to Trade on Friday:

On the hourly timeframe, the GBP/USD pair continues to form a new downward trend. There are no global foundations for medium-term dollar growth, so in 2026, we expect the global upward trend from 2025 to continue, which could push the pair to 1.4000 at a minimum. Over the past week, the situation has not favored the British currency, but in our view, this is merely a temporary pause.

On Friday, beginner traders may consider short positions if the pair consolidates below the 1.3529-1.3543 area, targeting 1.3484-1.3489. A consolidation above the area of 1.3529-1.3543 will allow for opening long positions with a target of 1.3643-1.3652.

On the 5-minute timeframe, the current levels to consider are: 1.3319-1.3331, 1.3365, 1.3403-1.3407, 1.3437-1.3446, 1.3484-1.3489, 1.3529-1.3543, 1.3643-1.3652, 1.3741-1.3751, 1.3814-1.3832, 1.3891-1.3912, 1.3975. On Friday, there are no interesting events or reports scheduled in the UK. At the same time, in the U.S., only one report—the University of Michigan consumer sentiment index—will be released, which is not considered particularly significant.

Main Rules of the Trading System:

1. The strength of the signal is determined by the time it takes to form (rebound or breaking through the level). The shorter the time, the stronger the signal.
2. If two or more trades were opened around a particular level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat market, any pair can generate numerous false signals or no signals at all. In any case, it is best to stop trading at the first signs of a flat.
4. Trades are opened during the time period between the start of the European session and until the middle of the American session, after which all trades should be manually closed.
5. On the hourly timeframe, signals from the MACD indicator should ideally be traded only when there is good volatility and a trend confirmed by a trend line or channel.
6. If two levels are too close to each other (ranging from 5 to 20 pips), they should be considered as a support or resistance area.
7. After moving 20 pips in the correct direction, it is advisable to set the Stop Loss to break-even.

What's on the Charts:

• Support and resistance levels are targets for opening buy or sell trades. Take Profit levels can be placed around them.
• Red lines indicate channels or trend lines that reflect the current trend and indicate the preferred direction for trading now.
• The MACD indicator (14,22,3) – the histogram and signal line – serves as a supplementary indicator that can also be used as a source of signals.
• Important speeches and reports (always found in the news calendar) can significantly influence the movement of the currency pair. Therefore, during their release, trading should be conducted with maximum caution, or it is advised to exit the market to avoid a sharp price reversal against the preceding movement.
• Beginners trading in the Forex market should remember that not every trade can be profitable. Developing a clear strategy and practicing sound money management are the keys to long-term trading success.