How to trade GBP/USD on March 6. Simple trading tips and analysis for beginners

On Friday, GBP/USD also moved in full accordance with the technique. On Thursday evening, the pair bounced from 1.1924, afterwards it started a new upward movement. The pair has been within the sideways channel for several weeks, which is perfectly shown above - the 1.1924-1.2143 range. Thus, the price simply bounced from its lower limit, and the fundamental and macroeconomic fundamentals on Friday were just the background and did not determine the pair's movement. The UK services PMI was released, which rose as expected and returned to the area above the 50.0. Thus, the situation is improving and we can talk about a positive trend again. The pound's upward movement could partly be because of this report. However, in the second half of the day, a stronger than predicted US ISM index came out, which could have triggered the dollar's growth. It could, but it didn't, because the technical picture suggested the pair's growth.

Despite the fact that the pair was rising all day, not a single trading signal was formed. The 1.2008 level is new, which did not take part on Friday. There are practically no levels inside the sideways channel for one simple reason. It is very difficult to determine any levels inside any flat. The price changes its direction too often. Therefore, the last buy signal was formed on Thursday. Thus, following our recommendations, beginners could not open positions on Friday. Recall that it is not a good time to trade in a flat.

GBP/USD started a new upward movement on the 30-minute chart, after rebounding from the lower limit of the 1.1924-1.2143 sideways channel. Thus, the price can move towards the upper limit in the next few days, notwithstanding the fundamental and macroeconomic background. The 1.2008 level is quite a formal level, we added it so that the area would not be completely empty. On the 5-minute chart, it is recommended to trade at the levels 1.1716, 1.1793, 1.1863-1.1877, 1.1924, 1.2008, 1.2065-1.2079, 1.2143, 1.2171-1.2179, 1.2245-1.2260. 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 Monday in the US and the UK. However, the pair is flat, so the movement could be: strong, weak, a trend or flat. We should be ready for any developments.

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.