How to trade GBP/USD on March 14. Simple trading tips and analysis for beginners

GBP/USD has spent the last four days in an uptrend. Of course, the first two days were quite weak, but Friday and Monday were very volatile. I already said that the strengthening of the pound was only formal, because in fact, the US dollar was falling all the time. On Friday it was because of the mixed market reaction to the unemployment and Nonfarm reports in the US, and on Monday it was due to the news about the crash of the two big banks in America. The pair might stop growing soon, since there are no reasons to open long positions further. Nevertheless, the market can decide in its own way, and we also have an ascending trend line. For instance, the dollar might continue to fall on Tuesday, if the US inflation report does not satisfy traders. We say "will not satisfy", because after Friday's data it is very difficult to say how market participants interpret the macro data now. We should be ready for any possible moves and reactions. In addition, during the week, there might be new information about the US banking system, which is also in the spotlight.

Monday's trading signals were not the best and the movements were confusing. The pair began to trade very volatile right from the opening of trading. The first sell signal was formed when the pair crossed the area of 1.2065-1.2079, and it turned out to be false. The pair could not go even 20 pips in the right direction. Therefore, the position was closed with a loss of about 30 pips on the nearest buy signal, which novice traders could also work out. The long position was more successful, as the price was able to rise to the area of 1.2171-1.2179, from which it bounced. The profit was 65 pips. Beginners could also use the sell signal at 1.2171-1.2179 and the buy signal at 1.2143, but those levels were too close to each other, so profit on each position did not exceed 10 points. Nevertheless, it was possible to gain about 50 pips in total.

On the 30-minute chart, GBP/USD finally broke out of the horizontal channel, but it did not move better. The pair continues to "swing". It is still possible to gain profit from these movements on the 5M chart, but it is difficult to do so on the higher chart. These movements may remain chaotic and strong during the coming days. On the 5-minute chart, it is recommended to trade at the levels 1.1863-1.1877, 1.1924, 1.1992-1.2008, 1.2065-1.2079, 1.2143, 1.2171-1.2179, 1.2245-1.2260, 1.2337-1.2343, 1.2387. As soon as the price passes 20 pips in the right direction, you should set a Stop Loss to breakeven. Unemployment, jobless claims and payrolls are scheduled to be released on Tuesday in the UK. But in America, a much more important inflation report will be released. On top of that, the market can continue to keep last Friday's report and this weekend's events in mind.

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.