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

GBP/USD kept the uptrend on Tuesday, but it was trading sideways along 1.2143 practically the whole day. So, on Tuesday, it might try to fall below 1.2143, and under the ascending trend line, which is quite formal, as it has no clear support points. During the last months, all the trends, which are forming on the lower chart, are short-term. It's because "swings" or a flat have been observed on higher charts for a long time. Therefore, I do not think that the current trend will last for a long time. It was initially impulsive and emotional. The market reacted quite violently to the reports about bankruptcy of two banks in the US, and also reacted not quite logically to the unemployment and Nonfarm reports in America. That's why we don't disregard an event that a new downtrend will start to form as soon as this week. Some interesting, but not very important reports were published in the UK. However, even by the overall volatility of the pair (not more than 70 pips) we see that the reaction was very weak, as we predicted.

On the 5-minute chart, you can clearly see that the pair was moving sideways the entire day. The only exception is the time period when the US inflation report was published, the rest of the time, the pair was clearly between 1.2143 and 1.2179. We have not even singled out the trading signals, as they were all of the same type and could not give much profit. Beginners could "add" a few dozens of points, as in most cases, the target levels worked out. But in any case, it is trading flat. And we always advise to avoid the flat.

On the 30-minute chart, GBP/USD is forming a new uptrend, but in the longer term it continues to "swing". On the 5-minute chart, it is still possible to profit from these movements (and not always), on the higher chart, it is rather difficult. In the coming days, the market may still be very volatile. 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. There are no interesting reports planned for Wednesday in the UK, while the US will release not the most important reports on producer prices and retail sales. I do not expect a strong market reaction to this data and we expect the pair to enter a new round of downward movement, which will be preceded by overcoming the trend line.

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.