Main Quotes Calendar Forum
flag

FX.co ★ Analytics and trading signals for beginners. How to trade GBP/USD on June 7? Analysis of Friday. Getting ready for Monday

parent
Forex Analysis:::2021-06-07T04:24:36

Analytics and trading signals for beginners. How to trade GBP/USD on June 7? Analysis of Friday. Getting ready for Monday

Analysis of previous deals:

30M chart of the GBP/USD pair

Analytics and trading signals for beginners. How to trade GBP/USD on June 7? Analysis of Friday. Getting ready for Monday

Last Friday, the GBP/USD pair made a spurt that was no less impressive than the day before on the 30-minute timeframe, but this time it was upward. The reason for such a strong movement was the US reports, and again on the labor market. This time, the weak (in terms of markets) NonFarm Payrolls report triggered the dollar to fall. "From the point of view of the markets" because in fact the report on Nonfarm was not that weak. However, the markets were expecting a higher value, so they were disappointed with the actual one. At the same time, a downward trend in the form of a downward channel remained at the disposal of novice traders. Therefore, one should trade down on the 30-minute timeframe. It is good that the MACD indicator did not form a single noteworthy signal during Friday. At the end of the day, quotes even exceeded the downward trend channel, so the downward trend has formally been canceled. The pound continues to trade more in the horizontal channel than in the trending channel.

5M chart of the GBP/USD pair

Analytics and trading signals for beginners. How to trade GBP/USD on June 7? Analysis of Friday. Getting ready for Monday

The picture of the pair's movement on the 5-minute timeframe, as usual, is much more complicated. But at the same time, the pound/dollar pair made it possible to open trading positions on Friday, as the signals began to form here in the morning, when there was still a lot of time left before the Nonfarm report was released. It all started with a completely fuzzy and indistinct signal - a rebound from the level of 1.4091. You shouldn't have opened a deal for a fall, since another 1.4081 lies just below this level. But it was possible to open a long position, but since the signal was inaccurate, we let it pass. But the next buy signal in the form of a breakthrough of the 1.4111 level should have been worked out for sure. So when the US reports were released, novice traders were already in a profitable long position. Therefore, the most convenient situation developed for them, in which it was possible not to take risks at all. The deal simply had to set Stop Loss to breakeven and we had to calmly wait for the release of NonFarm Payrolls and the unemployment rate. Once these reports were published, the upward movement intensified, and the price quietly surpassed the levels of 1.4143, 1.4165 and 1.4191. Novice traders had the right to take profits around any of these levels. So it was possible to get from 45 to 75 points of profit. A short position could also have been entered when the price settled below the 1.4191 level and this trade was also profitable as the closest 1.4165 level was also reached. Another 20 points. In general, Friday was an extremely successful day for beginners.

Trading tips for Monday:

At this time, the downward trend in the form of a downward trend channel remains on the 30-minute timeframe, but now it has already been broken. Therefore, the pound/dollar pair is likely to be in a horizontal channel again, so we recommend not tracking signals from the MACD indicator. The important levels on the 5 minute timeframe are 1.4081, 1.4091, 1.4111, 1.4143, 1.4165 and 1.4191. 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 scheduled for Monday in Britain and the United States. Roughly the same picture will be observed on Tuesday and Wednesday. Therefore, volatility may decrease and movements become more flat.

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.

Analyst InstaForex
Share this article:
parent
loader...
all-was_read__icon
You have watched all the best publications
presently.
We are already looking for something interesting for you...
all-was_read__star
Recently published:
loader...
More recent publications...