How to trade GBP/USD on October 11? Simple tips for beginners.

On Monday, the GBP/USD pair traded for the first time in three weeks with a slight volatility. Only 85 points were passed from the low to the high of the day, which in the current circumstances is very small, especially for the pound. Nevertheless, on Friday the price managed to consolidate below the rising channel, so the trend formally changed to a downward one. The pound is now a dark horse. In the sense that we do not know what we can expect from it. First, it fell down by 1,000 points in a week, then rose by 1,100 points in a week, and now it has been falling for the fourth consecutive day. We would say this: the probability of a new fall in the pound is high from the point of view of the "foundation" and geopolitics, and medium - from the point of view of technique. Geopolitics can bring the bears back to the market and force them to actively sell the pound again. No important macroeconomic statistics were released in either the US or the UK on Monday. Therefore, there was nothing to react to, and the nature of the pair's movement was quite expectedly flat.

In regards to Monday's trading signals, everything was boring on the 5-minute timeframe. Recall that trading in a flat is, in principle, quite difficult. The price reached the level 1.1024 twice and bounced off it twice, thus forming two sell signals. In both cases, profit could only be obtained by closing the position manually. In the first case, the pair went in the right direction for about 50 points, in the second - 20-30. Naturally, it was not possible to reach the target level of 1.1200. However, for a flat day, this result is acceptable, since it could have been much worse. The main thing is that there could not be a loss, in principle, Stop Loss should have been placed at breakeven for both transactions.

On the 30-minute timeframe, the GBP/USD pair is leaning more and more every day to resume the long-term downtrend. The price has already settled below the rising channel, many indicators on other timeframes also signal the resumption of the downward trend. Geopolitics and the foundation remain on the US dollar's side, so we are more inclined to the option that the fall will continue. On the 5-minute TF on Tuesday it is recommended to trade at the levels of 1.0833, 1.0927, 1.1024, 1.1200-1.1211-1.1236, 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 set to release the unemployment rate, retail sales and average wages. We do not consider these reports important, we think that they can provoke the pair's movement by a maximum of 30-40 points. The outcome of the G-7 summit will be of greater importance, which was urgently convened on Monday due to a new escalation of the conflict in Ukraine.

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.

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.