Analysis of previous deals:
30M chart of the GBP/USD pair
First of all, the GBP/USD pair was trading quite actively on the 30-minute timeframe on Friday, and secondly, it was doing so in quite a clear manner. Several signals that were very accurate were suddenly generated which did not even require a specific interpretation, as they were unambiguous. But at the same time, several situations emerged that require detailed analysis. So, let's begin. The first signal of the day was formed at night: the price settled below the 1.3773 level. This signal had to be passed. Further, the quotes of the pair dropped to the next extreme level of 1.3724 and bounced off it, forming a buy signal. Take note that an hour earlier the pair managed to leave the rising channel, and therefore, by that time the trend had changed to a downward trend. However, we trade in both directions from all extremum levels, so it was necessary to open long positions. Within a few hours, the price rose to the 1.3773 level and settled higher on the same bar. Thus, long positions could not even be closed, but you can continue to hold them with 1.3838 as the target or until Take Profit has been triggered, which we usually recommend placing at a distance of 40-50 pounds per pound. However, in the end, the quote reached the target level, which could bring a maximum of 98 points to novice traders. The minimum is 40-50, depending on who placed Take Profit and at how much. Formally, another sell signal was even formed, as there was again a clear rebound from the 1.3838 level. However, this signal was formed almost at the end of the market on Friday.
5M chart of the GBP/USD pair
Five trading signals formed on the 5-minute timeframe at once during the day, but they almost all coincided with similar signals on the 30-minute timeframe. However, there were also a few differences. For example, the third signal is a rebound from the 1.3811 level - there is no such level on the 30-minute timeframe, so novice traders could open short positions here. The signal turned out to be false and closed at a loss of 17 points. But the fourth signal - to buy in order to surpass the 1.3811 level, turned out to be correct and would bring 20 points of profit. Signals that were identical to the ones from the 30-minute timeframe, which we did not analyze. Thus, in any case, the day ended with a profit for the pound/dollar pair. No important reports were published in either the US or the UK. The fundamental background was also practically non-existent on Friday.
How to trade on Monday:
On Monday, we recommend trading again in accordance with the existing upward trend on the 30-minute timeframe, which continues to be supported by the rising channel. Thus, it will be necessary to wait for new buy signals in the form of upward reversals of the MACD indicator. The MACD indicator will initially need to be discharged to the zero level, as it is very high at the moment. No important and interesting events scheduled for April 19 both in Britain and America, so volatility may decrease and nothing will prevent novice traders from trading on technical signals. The most interesting thing is that a sell signal has already been formed even before trading begins on Monday - a rebound from 1.3838. But for obvious reasons, we do not recommend working it out. The important levels on the 5 minute timeframe are 1.3811, 1.3837, 1.3865 and 1.3913. The price can bounce off them or overcome them. As before, Take Profit is set 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 too far away, then you are advised to maintain the deal 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.
