Analytics and trading signals for beginners. How to trade GBP/USD on June 7? Analysis of Friday. Getting ready for Monday

Analysis of previous deals:

30M chart of the GBP/USD pair


Last Friday, the GBP/USD pair made a spurt that was no less impressive than the day before on the 30-minute timeframe, but this time upward. The reason for such a strong movement was again US reports, and again on the labor market. This time, the weak (in terms of markets) NonFarm Payrolls report triggered the dollar to fall. "From the point of view of the markets" because in fact the report on Nonfarm was not that weak. However, the markets were expecting a higher value, so they were disappointed with the actual one. At the same time, a downward trend in the form of a downward channel remained at the disposal of novice traders. Therefore, one should trade down on the 30-minute timeframe. It is good that the MACD indicator did not form a single noteworthy signal during Friday. At the end of the day, quotes even exceeded the downtrend channel, so the downtrend has formally been canceled. The pound continues to trade more in the sideways channel than in the trending channel.

5M chart of the GBP/USD pair


On the 5-minute timeframe, the picture of the pair's movement, as usual, is much more complicated. But at the same time, the pound / dollar pair made it possible to open trading positions on Friday, as the signals began to form here in the morning, when there was still a lot of time left before the publication of the Nonpharm report. It all started with a completely fuzzy and indistinct signal - a rebound from the level of 1.4091. You shouldn't have opened a deal for a fall, since another 1.4081 lies just below this level. But it was possible to open a buy trade, but since the signal was inaccurate, we let it pass. But the next buy signal in the form of overcoming the level of 1.4111 should have been worked out for sure. Thus, at the time of the release of American statistics, novice traders were already in a profitable long position. Therefore, the most convenient situation developed for them, in which it was possible not to take risks at all. The deal simply had to set Stop Loss to breakeven and calmly wait for the release of NonFarm Payrolls and the unemployment rate. After these publications, the upward movement intensified, and the price quietly broke through the levels of 1.4143, 1.4165 and 1.4191. Novice traders had the right to take profits around any of these levels. Thus, it was possible to get from 45 to 75 points of profit. A sell trade could also have been entered when the price consolidated back below the 1.4191 level and this trade was also profitable as the closest 1.4165 level was also reached. Another 20 pips have arrived. In general, Friday was an extremely successful day for beginners.

Trading tips for Monday:

At this time, the downward trend in the form of a downtrend channel remains on the 30-minute timeframe, but now it has already been broken. Therefore, the pound / dollar pair is likely to be in a sideways channel again, so we again recommend not tracking signals from the MACD indicator. On the 5 minute timeframe, the important levels are 1.4081, 1.4091, 1.4111, 1.4143, 1.4165 and 1.4191. The price can bounce off them or overcome them. As before, we set Take Profit at a distance of 40-50 points. At 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 events scheduled for Monday in Britain and the United States. Roughly the same picture will be observed on Tuesday and Wednesday. Thus, volatility may decrease and movements become more flat.

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 -