How to trade the GBP/USD currency pair on March 1. Simple tips and analysis of deals for beginners

Analysis of the deals from Tuesday:

30M chart of the GBP/USD pair

The GBP/USD pair was trading higher for the majority of Tuesday, but it still fell towards the close of the day. These movements had nothing to do with the macroeconomic or fundamental basis, as neither did those in the United States or the United Kingdom. Even yet, the market occasionally receives certain news that is hard to follow but to which it may respond even after the fact. We're referring to regular remarks made by officials from the ECB, the Fed, and the Bank of England. Each of them gives some indication that they are prepared to keep tightening monetary policy. And the issue arises in determining which of these indications are being carried out and which are not. It's no secret that the market likes to anticipate future monetary policy adjustments. Thus, the movements are frequently in front. However, if both central banks indicate a willingness to tighten monetary policy, it becomes difficult to predict how and when the market will respond. We predict that there could be a "swing" soon.

Trading signals were excellent due to Tuesday's high volatility of more than 130 points. The pair initially overcame the 1.2065–1.2079 range, which was a buy signal. Right now, new traders could start opening long positions. The price then increased to the level of 1.2138, exactly as calculated, and bounced off of it. As a result, the long positions should be closed (the profit was roughly 30 points) and short positions should be started instead. Before evening, the pair was able to get back to the previous day's high of 1.2079. As a result, new traders might benefit by another 30 points. Given how late the last sell signal formed, it shouldn't have been completed.

The pound/dollar pair started moving higher on the 30-minute TF, but there are no compelling reasons for the pound to rise at this time. We think the pair could now begin to move in "swing" mode, which would involve alternate movements of 300–400 points in either direction. As a result, a new batch of movement to the south may soon start. The following levels are available for trading on the 5-minute TF tomorrow: 1.1716, 1.1793, 1.1863–1.1877, 1.1950–1.1957–1.1961, 1.2065–1.2079, 1.2138, 1.2171–1.2179, and 1.2245–1.2260. 20 points might be set as a stop loss at breakeven when the price moves following an opening deal in the proper direction. There are no significant events planned for Wednesday in the UK, but the US will issue a significant index of business activity in the ISM manufacturing sector. There might not be a reaction if the forecast and the actual value are almost identical. Elsewhere, though, it can be rather strong.

1) The amount of time it takes to generate the signal is used to determine the signal strength (rebound or overcoming the level). The signal was stronger and took less time;

2) All following signals from a level should be ignored if two or more trades were opened nearby on false signals (which did not result in Take-Profit or determine the closest target level);

3. Every pair in a flat has the potential to generate numerous false signals or none at all. Yet, in any event, it is advisable to halt trading at the first indications of a flat;

4) The time between the start of the European session and the middle of the American session is when trade transactions are opened, and all of them must be manually terminated;

5) In a 30-minute time frame, signals from the MACD indicator can only be traded if there is strong volatility and a trend that is supported by a trend line or a trend channel;

6) Two levels should be regarded as a support or resistance area if they are too close to one another (within 5 to 15 points).

Listed on the chart:

Target levels for starting purchases or sales are the levels of price support and resistance. They may be positioned close to take-profit levels;

Red channels or trend lines represent the current trend and indicate the direction in which trading is now more profitable.

The intersection of the MACD indicator's signal line and histogram serves as a signal to buy or sell stock. It is advised to combine it with trend constructions (channels, trend lines).

Major speeches and reports that are always on the news calendar can have a big impact on how a currency pair moves. As a result, it is advised that traders trade carefully during their exit or leave the market altogether to prevent a fast price reversal from the prior action.

Novice Forex traders should keep in mind that not all transactions will be profitable. Long-term trading success is mostly dependent on developing a clear plan and practicing good money management.