How to trade GBP/USD on October 18? Simple tips for beginners.

The GBP/USD pair rose 250 points out of the blue on Monday, if you count from Friday's close. "Out of the blue" - because there were no important statistics or fundamental events on Monday. However, the highest volatility for the pound remains, so no one should be embarrassed by such a movement. Of course, we could see a "boring Monday", but the pound sterling is now still in a state of excitement after all the latest developments related to tax changes, the Bank of England's emergency long-term bond buying program and the shock in the debt market. Thus, we could only try to catch this movement, and not argue on the topic why the movement was the way it was. The pound is more likely to rise at this time than the euro. It, unfortunately, does not always move as we would like, or at least logically, but this is the foreign exchange market.

There was no flat on the 5-minute timeframe during the European trading session, so the trading signals were very good. The first buy signal was formed near the level of 1.1236. It turned out to be false, but purely formally false, since the price went in the right direction for 50 points. However, it did not reach the target level, so the position was closed by Stop Loss at breakeven. The next buy signal near the level of 1.1236 was already absolutely correct, as the price after it rose to the level of 1.1356 and overcame it, and then almost reached the level of 1.1443, near which the position should have been closed. Thus, this position managed to earn at least 150 points. Once again, novice traders had the opportunity to make sure that when the movement is trendy and volatile, you can earn very well and relatively easily. The complexity is just the flat periods. The last signal to sell near the level of 1.1443 should no longer have been worked out, since we managed to make excellent money on the first two positions. In addition, this signal was formed rather late.

The pound/dollar pair was aiming for a new round of downward movement on the 30-minute timeframe, but in the end showed a strong growth on Monday for no reason. Thus, we have formed an ascending trend line, which is currently supporting the bulls. Consolidating below this line may provoke a new round of downward movement, but until this happens, you can buy the pound more confidently. Perhaps we are now at a "tipping point" for the pound. On the 5-minute TF on Tuesday it is recommended to trade at the levels 1.1200-1.1211-1.1236, 1.1356, 1.1443, 1.1479, 1.1550, 1.1608, 1.1648. When the price passes after opening a position in the right direction for 20 points, Stop Loss should be set to breakeven. No important events are scheduled for Tuesday in the UK, and we only have a report on US industrial production (not the most significant) at the beginning of the US session. However, the pound clearly does not need statistics or "foundation" now. Even without them, it passes at least 200 points a day, making it possible for you to make excellent money.

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.