Analysis of previous deals:

30M chart of the GBP/USD pair

The GBP/USD pair tried to continue the upward movement on Thursday, which it started with grief after another rebound from the level of 1.2980. As a result, by the middle of the day, the pair managed to move up another 20 points, but at this point the bulls' fuse went out and the pound began to fall. In general, the movements in the last few weeks remain vague. The pair then shows hyper volatility, then trades for several days inside the horizontal channel, then shows weak movements. And all this despite the fact that the downward trend still persists, and there is still no downward trend line. In general, the technical picture on the 30-minute TF looks very strange. Traders cannot take the pair below 1.2980, but they are also unable to start a tangible growth without fundamental or geopolitical support. Andrew Bailey and Jerome Powell have delivered speeches. No important macroeconomic statistics have been published today either in America or in the UK.

5M chart of the GBP/USD pair

The pair's movement looks like a flat on the 5-minute timeframe, despite the fact that it is not on the 30-minute TF. However, as we can see, all the trading signals of the day were formed around the area of 1.3042-1.3049. And this is a sign of a flat. It should also be pointed out that the pair could not reach the target level in any of the six cases. Each signal led to a movement of several to 30 points. In general, the volatility of the day was about 70 points, which is not much. The first three trading signals were for buying. Novice traders could open two long positions on them, since the first time the pair very quickly returned to 1.3049 and formed a second buy signal. For the second time, 20 points were passed to the upside, which made it possible to set the Stop Loss to breakeven, at which the transaction closed. For the third time, the pair went up 30 points and also returned to the level of 1.3049, so in this case the deal closed at breakeven on Stop Loss. All subsequent signals should not have been worked out, since the first three turned out to be false. As a result, newcomers did not receive any profit or loss on Thursday.

How to trade on Friday:

The downward trend persists on the 30-minute TF despite the fact that in recent weeks the pair has been moving according to its own rules. Then in a flat, then on a roller coaster, then absolutely incomprehensible. However, if you move to a higher TF, then the downward trend is clearly visible. And it has not been canceled, because all this time the pound/dollar pair has not shown growth. It can't even really adjust. Therefore, we continue to expect the pound to fall. On the 5-minute TF tomorrow, it is recommended to trade by levels 1.2913, 1.2981-1.2993, 1.3043-1.3049, 1.3102, 1.3145. When the price passes after the opening of the transaction in the right direction, 20 points should be set to Stop Loss at breakeven. Bank of England Governor Andrew Bailey is scheduled to speak in the UK again tomorrow. Federal Reserve Chairman Jerome Powell will deliver a speech in America. In addition, reports on business activity and retail sales in Britain will be published. As we can see, there will be plenty of macroeconomic and fundamental events on Friday.

Basic rules of the trading system:

1) The signal strength is calculated by the time it took to form the signal (bounce or overcome the level). The less time it took, the stronger the signal.

2) If two or more deals were opened near a certain level based on false signals (which did not trigger Take Profit or the nearest target level), then all subsequent signals from this level should be ignored.

3) In a flat, any pair can form a lot of false signals or not form them at all. But in any case, at the first signs of a flat, it is better to stop trading.

4) Trade deals are opened in the time period between the beginning of the European session and until the middle of the American one, when all deals must be closed manually.

5) On the 30-minute TF, using signals from the MACD indicator, you can trade only if there is good volatility and a trend, which is confirmed by a trend line or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 points), then they should be considered as an area of support or resistance.

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.

The MACD indicator (14,22,3) 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 speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

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.