Analysis of previous deals:
30M chart of the GBP/USD pair
Last Friday, the GBP/USD pair was growing all day on the 30-minute timeframe. However, you do not need to start with this, but with the fact that the pair is currently in a horizontal channel between the levels of 1.3800 and 1.3877. And in order to see this horizontal channel, you don't even need to build it. A week earlier, the price was in a horizontal channel approximately between the levels of 1.3870 and 1.3957. Thus, there was simply a movement from one channel to another. And although, if you look at the higher charts, you cannot say that the pair is in a flat, on the 30-minute timeframe the picture is exactly the same. Since there is no trend here, it is still not recommended to consider signals from the MACD indicator at this time. There were no important reports in the UK last Friday, and reports on industrial production and GDP were released a day earlier, to which, one might say, the market's reaction followed. But the dollar simultaneously depreciated against the euro and the pound last Friday, and there may be a great many hypothetical reasons for this. Therefore, we advise you not to focus at this point yet.
5M chart of the GBP/USD pair
The pound/dollar pair moved quite well on the 5-minute timeframe. The main thing was to correctly disassemble each of the generated signals, since they were extremely imprecise and indistinct. For example, the first buy signal, which was formed near the level of 1.3800, was formed in total for almost the entire European session, and the movement itself at this time was almost a complete flat. However, the upward movement still began closer to the US session, and novice traders could open long positions here. Subsequently, the level of 1.3832 was reached and overcome, so long positions should be left open, and then the level of 1.3862. Therefore, novice traders had plenty of opportunities and guidelines to close a buy deal with good profit. They could have done this by Take Profit, since the price went up 50 points in total after the signal was generated. Manually, they had to close long positions as soon as the 1.3862 level was reached, since the movement began to weaken around this level, and time passed towards the evening, which would also bring about 50 points of profit. Thus, in almost any case, newbies earned 50 points on Friday.
Trading tips for Monday:
At this time, the pound/dollar pair is already in a different horizontal channel on the 30-minute timeframe, so you should not trade using signals from the MACD indicator at this time. You still need to wait for a trend, and at the same time for a trend line or channel. The important levels on the 5-minute timeframe are 1.3832, 1.3862, 1.3877, 1.3945. 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. No important events are scheduled for Monday in the UK and the US, so the pound/dollar pair may remain inside the horizontal channel and begin to decline to its lower border. At the same time, if the pair surpasses the 1.3877 level, it will continue to rise.
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.
