FX.co ★ How to trade GBP/USD on September 30? Simple tips for beginners.

How to trade GBP/USD on September 30? Simple tips for beginners.

Analysis of Thursday's deals:

30M chart of the GBP/USD pair

How to trade GBP/USD on September 30? Simple tips for beginners.

The GBP/USD pair almost repeated the movements of the EUR/USD pair on Thursday. The pound thus continues to recover, after the huge losses of the last week and the beginning of the current one. It is quite possible that we see the beginning of a new emerging trend, since there were no important events and reports on Thursday, but the pound still continues to grow, which is already almost 700 points from the last low. Such an increase in a few days may be the beginning of a trend. Nevertheless, we once again draw your attention to the fact that the geopolitical and fundamental backgrounds are not in favor of the British currency. In addition, the price continues to be below the descending trend line, so nothing is definitely decided yet. At least one important report will be published in the UK on Friday, but now everything depends on the mood of most traders. If they decide that it is not advisable to sell the pound further, then with any news and reports, the pound will rise. We may be seeing a tipping point. We also note the high volatility of the pair, which just went from a low to a high of more than 250 points.

5M chart of the GBP/USD pair

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How to trade GBP/USD on September 30? Simple tips for beginners.

High volatility is clearly visible on the 5-minute timeframe. The first three buy signals are rebounds from the level of 1.0833. Since the volatility is high, and there are few levels, it was necessary to focus on those numbers, how much the pair went up after each signal. For example, after the formation of the first - 40 points, after the second - also 40 points. Therefore, they cannot be considered false, Stop Loss should have been set for each transaction and there should not be a loss. The third buy signal turned out to be much stronger than the previous two, and it also had to be worked out. This time the price has gone up at least 150 points as of Thursday evening. This was exactly the profit that could have been made on this position, since it had to be closed manually. There are not many levels on top, but Thursday's peak can become an additional level, which is not yet in the chart.

How to trade on Friday:

The pound/dollar pair maintains a downward trend on the 30-minute TF, but at the same time it is growing quite actively. In principle, there is nothing surprising in the correction, given the scale of the pound's decline in recent weeks. However, such a strong move up could be the start of a long-term upward trend. Trading is still not very convenient, as there are still few levels in this area. On the 5-minute TF on Friday, it is recommended to trade at the levels of 1.0538, 1.0833, 1.0927, 1.1211-1.1236, 1.1356. When the price passes after opening a position in the right direction for 20 points, Stop Loss should be set to breakeven. The UK is scheduled to publish its final report on GDP for the second quarter, while the US has only a few minor reports. The pound continues to move 200-300 points per day, so the market definitely does not need the help of macroeconomics or "fundamentals".

Basic rules of the trading system:

1) The signal strength is calculated by the time it took to form the signal (bounce or overcome the level). The less time it took, the stronger the signal.

2) If two or more deals were opened near a certain level based on false signals (which did not trigger Take Profit or the nearest target level), then all subsequent signals from this level should be ignored.

3) In a flat, any pair can form a lot of false signals or not form them at all. But in any case, at the first signs of a flat, it is better to stop trading.

4) Trade deals are opened in the time period between the beginning of the European session and until the middle of the US one, when all deals must be closed manually.

5) On the 30-minute TF, using signals from the MACD indicator, you can trade only if there is good volatility and a trend, which is confirmed by a trend line or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 points), then they should be considered as an area of support or resistance.

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.

The MACD indicator (14,22,3) 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 lines (channels and trend lines).

Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

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 market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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