How to trade GBP/USD on February 15. Simple trading tips and analysis for beginners

GBP/USD was also trading higher on Tuesday morning, forming a new round of bullish correction, and then it collapsed in the second half of the day. It didn't immediately collapse, but with a rather long delay after the release of the U.S. inflation report. Nevertheless, before falling it reached 1.2260, from which it bounced back perfectly. Actually, the pair's movements were quite logical on Tuesday. In the morning, there were quite optimistic reports on unemployment and wages in the UK, and in the afternoon, the US inflation rate fell by only 0.1% in January, which implies that the Federal Reserve will toughen its rhetoric concerning the key rate in the near future. Thus, the dollar rose in the afternoon. I believe that the general decline is not over yet, despite overcoming the descending trend line. I expect the pair to fall to 1.1961. On Wednesday, the pound might be under pressure due to the British inflation report, which has almost no chances to provoke tougher rhetoric from the Bank of England.

There were quite a lot of signals on the 5-minute chart, but not all of them should have been priced. The first two signals were formed in a very limited price range, so as soon as a signal was formed, the pair was immediately near the next level or area. Thus, beginners could work out only the third signal to buy near 1.2171-1.2179. After its formation and before the release of the inflation report, the pair managed to go up 20 points and beginners could earn using this signal, because afterwards it became turbulent and it was better to leave the market. All succeeding signals were very inaccurate in a highly volatile non-trend movement. Therefore, they should not have been triggered. I warned you that the market reaction to the inflation report could be very strong.

On the 30-minute chart, GBP/USD may now resume the downtrend, since there were already two turns of the bullish correction, and the pair could not surpass 1.2260. Of course, Wednesday's UK inflation report may spoil everything, but we're still counting on the logical reaction, which is likely to trigger a new fall of the pair. On the 5-minute chart, it is recommended to trade at the levels 1.1950-1.1957-1.1961, 1.2065-1.2079, 1.2138, 1.2171-1.2179, 1.2245-1.2260, 1.2337-1.2343. As soon as the price passes 20 pips in the right direction, you should set a Stop Loss to breakeven. On Wednesday, the UK will release its consumer price index, which also has a very high chance to provoke a strong market reaction. In America, there are just a couple of secondary reports like industrial production or retail sales. The reaction to them will be weak, if at all.

1) The strength of the signal is determined by the time it took the signal to form (a rebound or a breakout of the level). The quicker it is formed, the stronger the signal is.

2) If two or more positions were opened near a certain level based on a false signal (which did not trigger a Take Profit or test the nearest target level), then all subsequent signals at this level should be ignored.

3) When trading flat, a pair can form multiple false signals or not form them at all. In any case, it is better to stop trading at the first sign of a flat movement.

4) Trades should be opened in the period between the start of the European session and the middle of the US trading hours when all positions must be closed manually.

5) You can trade using signals from the MACD indicator on the 30-minute time frame only amid strong volatility and a clear trend that should be confirmed by a trendline or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 pips), they should be considered support and resistance levels.

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 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, and 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 patterns (channels and trendlines).

Important announcements and economic reports that can be found on the economic calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommend trading as carefully as possible or exiting the market in order to avoid sharp price fluctuations.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management is the key to success in trading over a long period of time.