Analysis of previous deals:
30M chart of the GBP/USD pair
The GBP/USD pair traded very poorly for traders on the 30 minute timeframe on Thursday. There was no trend movement during the day, all trades were held between the levels of 1.3724 and 1.3773, that is, in fact, within the 50-point horizontal channel. At the same time, the levels 1.3773 and 1.3724 were formed today, that is, it was impossible to trade on them for a rebound or breakthrough today. Thus, novice traders could only trade using the MACD indicator today. Some time ago there was still a level of 1.3750, but the price surpassed it three times yesterday and made it irrelevant. Thus, we return to our two sell signals. The sell signals should have been considered today, since the price had previously settled below the upward trend line. However, by and large, novice traders could consider any reversals of the MACD indicator today, anyway, the pair moved in a flat and all signals turned out to be false. In the first case, after forming a sell signal, the pair went down 20 points, which allowed traders to set Stop Loss to breakeven and avoid losses. In the second case, a sell signal was formed when the price had already returned to this level and failed to surpass it again. Thus, short positions should not have been opened here anymore. By the way, the 1.3724 level could be considered as the previous day's low. But this is more for the 5-minute timeframe. In general, the downward trend is preserved for the pair, but now you need to wait for the price to leave the 1.3724-1.3773 horizontal channel.
5M chart of the GBP/USD pair
You can clearly see that the pair rebounded off the 1.3724 level twice on the 5-minute timeframe. This level has been the daily low since yesterday. But the 1.3772 level was not yet there, it was built only a couple of hours ago. Thus, paradoxical as it may seem, you should have opened long positions on the 5-minute timeframe twice on the rebound from the 1.3724 level. In the first case, the price went up by about 39 points, in the second - only 11. Thus, it was not possible to close deals even by Take Profit, therefore, in this case, one could not make a profit. In general, today's trading was quite chaotic. But it is good that there were no serious losses.
How to trade on Friday:
On Friday, we recommend trading according to the downward trend on the 30-minute timeframe. Therefore, it will be necessary to wait for new sell signals tomorrow. To do this, the MACD indicator needs to be discharged upward to the zero level again. At the same time, the horizontal channel remains, so tomorrow you can trade on a rebound from its borders or to overcome the lower one. There are no important and interesting events scheduled for April 9 in both Britain and the United States. The important levels on the 5-minute timeframe are 1.3724, 1.3772. The price can rebound off them or overcome them. As before, we set Take Profit at a distance of 40-50 points on a 30-minute timeframe, while the target on the 5-minute timeframe is the nearest level. If the nearest level is far away, then you are advised to trade in manual mode, tracking changes in the market. When passing 20 points in the right direction, we recommend setting 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.
