How to trade GBP/USD on February 28. Simple trading tips and analysis for beginners

GBP/USD also rose on Monday. The upward movement started in the morning, but it was not so strong to make any conclusions. Weak results on the US Durable Goods Orders reports was released in America, which supported the dollar's competitors, so the upward movement continued. As a result, the pound gained almost 100 points. However, this movement did not affect the general situation and trend. I still believe that the pair should fall. The price has settled below the ascending trend line last week, therefore, there is a technical signal to sell as well. GBP is falling less willingly against USD than EUR, but there are no growth prospects for it now (in my opinion).

Despite the fact that the pair was moving only in one direction for most of the day, the trading signals were not the best. At first, the pair rebounded from the area of 1.1950-1.1957-1.1961, but it failed to go in the right direction even 20 pips, which would be enough to place the Stop Loss to Breakeven. The next was the formation of not the most accurate buy signal, when the pair settled above the area of 1.1950-1.1957-1.1961. After that, the novice traders got the movement they expected. The British currency grew by 50-80 pips till the evening, and with that much, beginners could earn by closing the deal manually almost anywhere. The pound nearly reached the 1.2065 target level, but fell short of as much as 10 points.

On the 30-minute chart, GBP/USD corrected quite strongly on Monday, but we do not yet see serious reasons to continue the upward movement. Accordingly, I expect the pair to fall again. This week the fundamental and macroeconomic backgrounds will be scarce again, so we should not expect a strong decline as well. On the 5-minute chart, it is recommended to trade at the levels 1.1716, 1.1793, 1.1863-1.1877, 1.1950-1.1957-1.1961, 1.2065-1.2079, 1.2138, 1.2171-1.2179. As soon as the price passes 20 pips in the right direction, you should set a Stop Loss to breakeven. There are no important events scheduled for Tuesday in the UK or the US. I believe that the volatility could be significantly lower on Tuesday and the pair could move not in the best way, with frequent corrections, pullbacks and reversals and even in a flat.

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.