Analysis of previous deals:
30M chart of the GBP/USD pair
Only three trading signals were formed on the 5-minute timeframe on Friday. In part, novice traders were very lucky, since there were no other levels between the important levels from the 30-minute TF of 1.3896 and 1.3975, although there are usually extreme levels of the previous days. However, this time there was none, which allowed beginners to earn good money on July 30. The first sell signals were formed during the European trading session in the form of rebounds from the level of 1.3975. The first was not the most accurate, but the second was much more accurate and stronger. After the formation of these two signals, the price went down 67 points and reached the nearest level of 1.3896. Thus, novice traders could make a profit by closing a trade near the target, and by Taking Profit, and as they like. Naturally, it was not worth working out a buy signal in the form of a price rebound from the level of 1.3896, since by that time it was already the evening and the foreign exchange market was about to close. The macroeconomic reports that were published during the day did not have any impact on the pair.
5M chart of the GBP/USD pair
Only three trading signals were formed on the 5-minute timeframe on Friday. In part, novice traders were very lucky, since there were no other levels between the important levels from the 30-minute TF of 1.3896 and 1.3975, although there are usually extreme levels of the previous days. However, this time there is no, which allowed the newcomers to earn good money on July 30. The first sell signals were formed during the European trading session in the form of bounces from the level of 1.3975. The first was not the most accurate, but the second was much more accurate and stronger. After the formation of these two signals, the price went down 67 points and worked out the nearest level of 1.3896. Thus, novice traders could make a profit by closing a trade near the target, and by Taking Profit, and as they like. Naturally, it was not worth working out a buy signal in the form of a price rebound from the level of 1.3896, since by that time Friday evening and the closing of the foreign exchange market were already approaching. The macroeconomic statistics that were published during the day did not have any impact on the pair.
Trading tips for Monday:
At this time, on the 30-minute timeframe, the pound/dollar pair has settled below the rising channel, so the trend has changed to a downward one. Thus, on the 30-minute timeframe at this time, it is necessary to consider the sell signals from the MACD indicator. To do this, you need to wait for its discharge to the zero level. And for this, it is necessary that an upward correction begins. The important levels on the 5-minute timeframe are 1.3832, 1.3862, 1.3896 and 1.3975. We recommend trading on them. The price can rebound from them or overcome them. As before, we set Take Profit at a distance of 40-50 points. You can use all the nearest levels on the 5-minute TF as targets, but then you need to take profit, taking into account the strength of the movement. When passing 20 points in the right direction, we recommend setting the Stop Loss to breakeven. On Monday, the UK is scheduled to publish only the index of business activity in the manufacturing sector, as in the US. However, these reports can be easily ignored, since recently, the markets did not even pay attention to much more important events and reports.
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.
The material has been provided by InstaForex Company - www.instaforex.comfrom RobotFX
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