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How to trade the GBP/USD currency pair on September 29? Simple tips for beginners

Analysis of previous deals:

30M chart of the GBP/USD pair

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The pound/dollar pair moved on the 30-minute timeframe as traders expected. Unfortunately, such movements have been extremely rare in recent months, but when they do, they allow traders to earn decent sums. As we have already said in our other articles, today's decline in the pound, as a result of which the pair fell by 170 points, was triggered by events in the UK, where a "fuel crisis" formed, as a result of which many gas stations were completely without gasoline. Of course, it cannot be said that this one event triggered such a powerful drop in the pound. However, we draw your attention to the fall that began early in the morning, right at the opening of the European trading session. This means that it was European traders who began to get rid of the pound en masse, expecting new problems in the UK economy. But those fundamental events that were planned for today had no effect on the pair's movement. We are talking about the speeches of Janet Yellen and Jerome Powell, who again did not tell the markets anything interesting.

5M chart of the GBP/USD pair

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The pair formed a huge number of strong signals on the 5-minute timeframe on Tuesday. This is because the movement itself was strong and trendy. Therefore, the price easily crossed one level after another, allowing novice traders to open short positions. But first things first. The first sell signal was formed when the price broke the 1.3692 level. It was already possible to open short positions here. Subsequently, the levels 1.3677, 1.3639, 1.3612, 1.3590 were overcome. The last level (1.3522) is today's low and was not yet on the chart when the pair was moving down. Thus, the very least that beginners could earn today is 40-50 points, according to Take Profit. However, taking into account the strength of the movement, it was also possible not to consolidate profit at TP, but simply to set the Stop Loss level above each overcome level, so that if a rollback begins, the transaction will be closed at maximum profit. In this way, it was possible to earn 80-120 points, since the Stop Loss did not work and the deal could be manually closed.

How to trade on Wednesday:

The pound/dollar pair is in a downward trend on the 30-minute timeframe at this time. However, mainly due to today's powerful fall. There is no trend line or channel, because there was an upward trend yesterday. We draw your attention to some randomness in the pound's decline. An upward correction may follow tomorrow. It is not recommended to consider signals from the MACD indicator yet. The important levels on the 5-minute timeframe are 1.3522, 1.3590, 1.3612. We recommend trading with them. The price can bounce off them or overcome them. As before, we set Take Profit at a distance of 40-50 points. At the 5M TF, you can use all the nearest levels 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 Stop Loss to breakeven. Central bank governors Andrew Bailey and Jerome Powell are scheduled to speak in the UK and the US on Tuesday. However, with a high degree of probability, these speeches will not give the markets any new information, so there will be no reaction to them.

What's on the chart:

Support and Resistance Price Levels - Levels that are targets when buying or selling. You can place Take Profit levels near them.

Red lines - channels or trend lines that display the current trend and show which direction it is preferable to trade now.

MACD indicator is a histogram and a signal line, the crossing of which is a signal to enter the market. It is recommended to use in combination with trend plots (channels, 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 in the Forex market should remember that every trade cannot 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.com