How to trade the GBP/USD currency pair on September 7? Simple tips for beginners

Analysis of previous deals:

30M chart of the EUR/USD pair

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The GBP/USD pair corrected within the upward trend on the 30-minute timeframe on Monday, which continues to be supported by the upward channel. Thus, a price rebound from the lower boundary of this channel or the level of 1.3796 may provoke a resumption of the upward movement. Unfortunately, the pair continues to move in a very weak manner, as in the case of the euro/dollar. Therefore, the traditionally more volatile pound/dollar pair is also very difficult to trade at this time. For example, today no trading signals were generated on either the 30-minute timeframe or the 5-minute timeframe. Moreover, this situation is repeated quite often. The problem is that, along with the fall in volatility, the number of generated signals has also greatly decreased. If six months ago, 3-4 strong signals were formed every day, which needed to be worked out absolutely accurately, now it is 1-2 signals a day. And even then not every day.

5M chart of the EUR/USD pair

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The pair was correcting on the 5-minute timeframe, and not a single trading signal was formed during the day. Thus, by and large, there is nothing to analyze. The quotes approached the level of 1.3816 only by the end of the trading day, but never worked it out. And in any case, it is not recommended to open a position in the evening, since at night there is almost always a flat or very weak movement. At this time and during the day, either a flat or a weak movement is almost always observed. Therefore, you should not have opened any transaction during the day.

How to trade on Tuesday:

At this time, the pound/dollar pair is in an upward channel on the 30-minute timeframe,, so we advise beginners to look closely at buy signals from the MACD indicator. However, volatility is very weak even for the pound/dollar pair, so it is still better to wait for the movement to intensify before trading according to the MACD indicator signals. But a rebound from the level of 1.3796 or the lower channel line can be used as a buy signal, and overcoming these obstacles can be used as a sell signal. The important levels on the 5-minute timeframe are 1.3796, 1.3816, 1.3874, 1.3891. 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. There are no major publications or events scheduled for Tuesday in the UK and the US. Thus, volatility may remain very weak tomorrow.

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 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 material has been provided by InstaForex Company - www.instaforex.com

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