Analysis of previous deals:
30M chart of the GBP/USD pair
The GBP/USD pair spent the first trading day of the week in an upward movement. If on Friday, when the macroeconomic background was objectively very strong, the euro and the pound stood in one place, then on Monday, when the calendar of events was almost empty, traders became more active and began to actively sell off the US dollar, which resulted in a strong growth for both the euro and the pound. Yesterday, we advised you to consider long positions on the 30-minute timeframe, as the upward trend line maintains the upward trend. Only one such signal was formed during the day – it is circled in the chart. And this signal turned out to be very strong and very profitable. The indicator's upward pivot point is approximately 1.3834. After that, the price reached and immediately surpassed the 1.3845 level, and then the next resistance level of 1.3896. Therefore, novice traders could earn around 60 points of profit on this signal. We also always recommend setting a Take Profit on the pound at a distance of 40-50 points from the entry point, so beginners could take at least 40 points. No other signals were formed during the day. The price has surpassed the 1.3896 level, but it is not recommended for novice traders to stay with open positions overnight. Or you need to set the Stop Loss below the 1.3890 level in case a downward correction begins. No important report from the UK during the day, while the ISM report was released in the US, which was ignored.
5M chart of the GBP/USD pair
Two buy signals were also formed at once on the 5-minute timeframe, which could be worked out and so you can earn money on them. If the first signal - a rebound from the 1.3811 level was inaccurate, since the price did not formally reach the level of 1 point, then the second signal - to surpass 1.3845 and 1.3851 had to be worked out again. However, at this time, long positions were opened on the hourly timeframe, so there was no point in duplicating the same trades. But in any case, novice traders should have ended the day in a good profit. Tomorrow, the price will aim for the 1.3956 level, but first it will need to adjust at least a little.
How to trade on Tuesday:
On Tuesday, we recommend trading again according to the current uptrend on the 30-minute timeframe. Monday's buy signals have been worked out. Therefore, we will have to wait for new signals tomorrow. Either a clear rebound from above the 1.3845 level, or that the price does not settle below the 1.3896 level, or for the MACD indicator to turn to the upside after it has previously discharged to the zero level. No reports scheduled for both the US and the UK on April 6. The important levels on the 5-minute timeframe are 1.3845, 1.3851 and 1.3956. The price can rebound from them or surpass them. As before, Take Profit is set at a distance of 40-50 points on the 30-minute timeframe, while the target is the nearest level on the 5-minute timeframe. If the nearest level is far away, then you should maintain the trade in manual mode, tracking changes in the market. If you pass 20 points in the right direction, we recommend setting the Stop Loss to breakeven.
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.
