Analysis of previous deals:
30M chart of the GBP/USD pair
The GBP/USD pair continued its upward movement on Tuesday's 30-minute timeframe, but most of it fell at night and morning trading. Thus, it was difficult for novice traders to make profit from today's movements. The pair went flat during the US trading session and it was already very difficult and inconvenient to trade there. But first things first. Since the upward trend for the pair is maintained thanks to the upward trend line, it is recommended to trade on the 30-minute timeframe for an increase. There were two buy signals from the MACD indicator today, but both were formed well above the zero mark, so both signals had to be filtered out. Therefore, deals should not have been opened on the current timeframe.
5M chart of the GBP/USD pair
The movements and trades were more interesting on the 5-minute timeframe, but again it was before the US trading session, or even until the middle of the European one. Then an outright flat began between the levels of 1.4181 and 1.4219. The 1.4219 level is today's high and was not present in today's trading. In total, three signals were formed during the day, and all of them were for buying. The pair crossed the level of 1.4181 at the very beginning of the European trading session, which served as a signal to open long positions. However, after forming this signal, the pair went up no more than 30 points, which was not enough for Take Profit to work. Also, the price failed to reach the closest level of 1.4238. Therefore, a long position was closed by Stop Loss at breakeven. Then the price returned to the level of 1.4181 and again rebounded off it, forming a second buy signal, which should also be worked out. But this time, too, the price went up only 23 points, which was enough to set Stop Loss at breakeven, but not enough to take profit. The third signal to buy everything from the same level at 1.4181 should not have been worked out, since the two previous ones were false and did not give novice traders any profit. Also early in the morning, the UK published data on unemployment and change in the number of applications for unemployment benefits. The data is positive and could help the pair continue to rise.
Trading tips for Wednesday:
An upward trend is maintained on the 30-minute timeframe at this time, supported by an upward trend line. Thus, it is recommended to continue to consider long positions and look for buy signals at this TF. The MACD indicator has practically dropped to the zero level, so now you need to wait for the end of the correction (by the way, very weak) and the formation of new buy signals. The important levels on the 5 minute timeframe are 1.4157, 1.4181, 1.4219 and 1.4238. The price can rebound off them or surpass them. As before, we set Take Profit at a distance of 40-50 points. At the 5M TF, you can use all the closest levels as targets, but then you need to take profits, taking into account the strength of the movement, so as not to close the deal too early. When passing 20 points in the right direction, we recommend setting Stop Loss to breakeven. On Wednesday, the UK will publish the inflation rate for April, which may accelerate from 0.7% y/y to 1.4% y/y. If the forecast comes true, then the markets may react to this report. No more important news from Britain, and in the evening, the minutes from the last Federal Reserve meeting will be published in the US, but by that time novice traders will have to leave the market.
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.
