How to trade GBP/USD on April 19. Simple trading tips and analysis for beginners
April 19, 2023 3:24 am
Analyzing Tuesday’s trades:
GBP/USD on 30M chart
The GBP/USD pair also corrected on Tuesday and reached the important 1.2444 level, which has been the upper limit of the horizontal channel on the 24-hour view. So there’s a high probability of bouncing from this level. A bounce from it will trigger a new wave of downward movement, which we are waiting for. Overall, I believe that the pound can return to 1.1840, which is the lower limit of the horizontal channel. Several reports were published in the UK. The pound was rising, so it is reasonable to assume that the reports turned out to be stronger than forecasts. In fact, this is not the case. The unemployment rate rose, the number of jobless claims exceeded the forecast several times, and only wages increased, but they were the least important report. Thus, the pound rose again when it should have fallen, and we conclude that the market ignored the British data and was busy with a technical correction.
GBP/USD on 5M chart
The trading signals on the 5-minute chart were quite good on Tuesday. First, the pair formed a buy signal around the 1.2396 level, afterwards it managed to rise to the nearest target level, perfectly working it out with precision (and twice). At this point, it was necessary to close longs with a profit of about 25 points (volatility was not the highest today) and open a short position (the signals were duplicated, so only one). The short position also managed to make a profit because no other signals were formed until the evening. Shorts should be closed manually closer to the evening, and the profit on them was about 10 points. Not bad for a fairly mediocre Tuesday.
Trading tips on Wednesday:
On the 30-minute chart, the GBP/USD pair started a bearish correction, which could end very quickly. I believe that the pound should have fallen a long time ago, and there are many more reasons in favor of its decline than its further growth. However, the market may think otherwise. The 1.2444 level may create significant resistance for the bulls, so I expect the pound to fall on Wednesday. On the 5-minute chart, you can trade at levels 1.2171-1.2179, 1.2245-1.2260, 1.2343-1.2360, 1.2396, 1.2444, 1.2477, 1.2520, 1.2577-1.2597-1.2616. As soon as the price passes 20 pips in the right direction, you should set a Stop Loss to breakeven. On Wednesday, the UK will release its March inflation report, and this is quite important. Since inflation is likely to slow down, the pound may also continue to decline.
Basic rules of the trading system:
1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.
2) If two or more positions were opened near a certain level based on a false signal (which did not trigger a Take Profit or test the nearest target level), then all subsequent signals at this level should be ignored.
3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.
4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.
5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.
6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.
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 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, and 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 patterns (channels and trendlines).
Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.
Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
Analyzing Tuesday’s trades:
GBP/USD on 30M chart
The GBP/USD pair also corrected on Tuesday and reached the important 1.2444 level, which has been the upper limit of the horizontal channel on the 24-hour view. So there’s a high probability of bouncing from this level. A bounce from it will trigger a new wave of downward movement, which we are waiting for. Overall, I believe that the pound can return to 1.1840, which is the lower limit of the horizontal channel. Several reports were published in the UK. The pound was rising, so it is reasonable to assume that the reports turned out to be stronger than forecasts. In fact, this is not the case. The unemployment rate rose, the number of jobless claims exceeded the forecast several times, and only wages increased, but they were the least important report. Thus, the pound rose again when it should have fallen, and we conclude that the market ignored the British data and was busy with a technical correction.
GBP/USD on 5M chart
The trading signals on the 5-minute chart were quite good on Tuesday. First, the pair formed a buy signal around the 1.2396 level, afterwards it managed to rise to the nearest target level, perfectly working it out with precision (and twice). At this point, it was necessary to close longs with a profit of about 25 points (volatility was not the highest today) and open a short position (the signals were duplicated, so only one). The short position also managed to make a profit because no other signals were formed until the evening. Shorts should be closed manually closer to the evening, and the profit on them was about 10 points. Not bad for a fairly mediocre Tuesday.
Trading tips on Wednesday:
On the 30-minute chart, the GBP/USD pair started a bearish correction, which could end very quickly. I believe that the pound should have fallen a long time ago, and there are many more reasons in favor of its decline than its further growth. However, the market may think otherwise. The 1.2444 level may create significant resistance for the bulls, so I expect the pound to fall on Wednesday. On the 5-minute chart, you can trade at levels 1.2171-1.2179, 1.2245-1.2260, 1.2343-1.2360, 1.2396, 1.2444, 1.2477, 1.2520, 1.2577-1.2597-1.2616. As soon as the price passes 20 pips in the right direction, you should set a Stop Loss to breakeven. On Wednesday, the UK will release its March inflation report, and this is quite important. Since inflation is likely to slow down, the pound may also continue to decline.
Basic rules of the trading system:
1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.
2) If two or more positions were opened near a certain level based on a false signal (which did not trigger a Take Profit or test the nearest target level), then all subsequent signals at this level should be ignored.
3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.
4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.
5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.
6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.
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 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, and 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 patterns (channels and trendlines).
Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.
Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
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