How to trade GBP/USD on October 21? Simple tips for beginners.

The GBP/USD pair started a new round of upward movement on Thursday, which was not due to any specific factors. In principle, there was news that British Prime Minister Liz Truss had resigned and, thus, spent only 44 days in her post. Theoretically, the pound could react with growth to this event. But at the same time, the euro was also growing, and the points of the beginning of the upward movement surprisingly coincide with the time of the announcement of far from the most important and significant reports in the United States, which could not provoke a fall in the dollar. Thus, as in the case of the euro, there was a movement, it turns out there was a reaction, but it is unclear what the market reacted to. The pound, which retains greater chances for growth than the euro, can indeed continue it for some time. There is at least some logic in his movements. At the same time, we note that the fundamental background remains difficult for the pound, and the losses associated with the "Truss tax plan" have already been won back by the market, which means that there are no good reasons for the pound's growth. The ascending trend line will most likely have to be rebuilt if the pound does not collapse again on Friday.

On the 5-minute timeframe, the nature of the pound's movement was one-to-one, as in the euro currency. Absolutely flat during the European session and a rather active one during the US session. In fact, two trading signals were formed during the day, each of which was formed for several hours. First, the pair broke down below the 1.1200 level, but failed to continue moving down, so novice traders had to close this trade at the high around the 1.1211 level. Then a signal to buy was formed and it was already possible to earn several tens of points on it, since by the evening the pound had almost managed to grow to the level of 1.1356. The volatility of the day was again more than 150 points, and the profit on a long position was at least 70 points.

The pound/dollar pair is trying to start a new downward trend on the 30-minute time frame. The fact that the price has overcome the trend line already allows us to expect a new fall in the pound. And the fact that the euro also settled below the trend line only increases the likelihood of both risky currencies falling. However, consolidating above the level of 1.1356 will return the pair to the upward trend. On the 5-minute TF on Friday it is recommended to trade at the levels 1.1024, 1.1200-1.1211-1.1236, 1.1356, 1.1443, 1.1479, 1.1550. When the price passes after opening a position in the right direction for 20 points, Stop Loss should be set to breakeven. The calendar of macroeconomic events for the UK carries one report on retail sales. This report is not as significant, but given the current realities, the market may react to it. At the same time, it absolutely does not matter what the value of this report will be. On the other hand, there is nothing interesting in the US.

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.