Analysis of Tuesday's deals:

30M chart of the GBP/USD pair

The GBP/USD pair also continued its upward movement on Tuesday. The growth rate of the British currency is already less than a week ago, but at the same time, the pound continues to grow very quickly, it's just not visible in the chart. If you look at the picture above, we can assume that the pair's volatility on Tuesday was 80 points. In fact, it is more than 150. Thus, even taking into account the correction within the day, the pound has risen in price significantly. It continues to be near the upper border of the rising channel and is not going to be corrected globally yet. The entire rise from the last low is already more than 1000 points. We believe that this is a significant order for the end of the downward trend and the beginning of a long-term upward trend. Unfortunately, geopolitics can ruin everything. There has been no fresh news in the past few days, but this does not mean that they will not appear tomorrow or the day after tomorrow. A Federal Reserve meeting is not geopolitical news, which is clearly on schedule. Therefore, we warn you anyway: now the pound is rising and, from a technical point of view, everything suggests that a new upward trend has begun, but geopolitics can ruin everything.

5M chart of the GBP/USD pair

Unfortunately, the nature of the pair's movement on the 5-minute timeframe was very bad. Although the volatility was high, the correction in the European trading session spoiled everything. Thanks to this correction, all trading signals of the day were formed around the level of 1.1356. Thus, there was no flat, but it was inconvenient to trade the pair, since none of the target levels was reached even once. However, not all signals can be called false. For example, the first signal to buy - overcoming 1.1356 - allowed the pair to rise by 55 points. It can hardly be considered false. The second and third sell signals allowed the pound to fall by 45 points, which is also quite a lot. The fourth and fifth buy signals made it possible to go up 45 points. Therefore, it was possible to work out this or that signal, but it would be possible to get a profit on it only if the position was closed manually.

How to trade on Wednesday:

The pound/dollar pair continues to remain within the ascending channel on the 30-minute TF. Volatility remains high, and the pound is rising even without the help of fundamental or macroeconomic data. Such a movement is quite capable of being present for a few more days, at least. On the 5-minute TF on Wednesday it is recommended to trade at the levels 1.1200-1.1211-1.1236, 1.1356, 1.1443, 1.1479, 1.1550, 1.1608. When the price passes after opening a position in the right direction for 20 points, Stop Loss should be set to breakeven. Reports on business activity in the services sector are set to be released in the UK and America on Wednesday. We believe that the market is now predisposed to buying the pound, so any data in its favor can be interpreted as a signal for strong long positions. Also the ADP report on the change in the number of employees in the US private sector will be released, and if it turns out to be disappointing, then this may also be a reason to buy the pair.

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 US 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.