Hourly chart of the GBP/USD pair
The GBP/USD pair began to correct and spent the whole day doing it. Since the upward trend for the pair has already reversed, we advised you to consider opening short positions. Since there was no sell signal during the day, you should not have opened positions today. At least following our recommendations. In general, after breaking the rising trend line, the downward trend persists, so you need to wait for a new sell signal from the MACD, especially since this indicator has already been sufficiently discharged (above the zero level). As for long positions on the British pound, a new upward trend is unlikely to form in the near future, therefore you should not consider them yet.
Fundamentally, there is still absolutely nothing to say now. The UK and the European Union have both agreed on a trade deal, but now there is little to do - it needs to be ratified by both parliaments. The British Parliament will meet to decide this issue on Wednesday, the European Parliament - in February-March next year. However, in fact the deal has already been approved and is unlikely to be rejected by any parliament. Thus, they are just formalities, and the solution is unlikely to affect the pound/dollar pair. We do not expect any important news in the last two days of the outgoing year. The main thing is to end the year without unnecessary losses in the final days.
No important macroeconomic reports or other events scheduled for Wednesday, December 30. Thus, there won't be a fundamental background, but this does not mean that the pound/dollar pair will be immobilized. As we could see, the trades were quite active in recent days.
Possible scenarios on December 30:
1) Buy orders have lost their relevance, since the price settled below the trend line. And so, the bulls have released the initiative and now we need to wait for a new upward trend in order to be able to trade up. Such a trend is unlikely to appear the next day.
2) Sell positions are more relevant now. The pair corrected and is now preparing for a new round of downward movement. Thus, novice traders can only wait for a new sell signal from MACD and open new short positions while aiming for the support level of 1.3392.
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.