How to trade GBP/USD on April 4. Simple trading tips and analysis for beginners

On Monday, GBP/USD showed identical movements to EUR/USD. The same fall, and even the same powerful growth. The UK only released its PMI manufacturing report, which turned out to be weaker than expected. So it could not provoke the pound's growth. The next important report - the US ISM manufacturing data - was released in the evening, so it had nothing to do with the pair's growth during the European session. Meanwhile, the pound quietly regained its uptrend after it broke the uptrend line on Friday. We did not see any fall, but we saw another unsubstantiated growth. There is still hope that the pair will not cross the 1.2440 level, because it is the upper limit of the horizontal channel in the 24-hour view. But if the bulls' are so strong now, that the pound is growing without any reason, this level will not stop the pair's growth for a long time.

Speaking of trading signals, the situation was a bit complicated. Although the movement was almost the same, traders could not catch the beginning, and the first signal (overcoming the area of 1.2343-1.2360) was formed after passing 50-60% of the way up. It was possible to open a long position, but after consolidating below 1.2396, it had to be disposed of. The profit was about 15 pips, which is not much, considering the strength of the upward movement during the day. The sell signal should not have been used, because it was formed late, and the pair resumed the uptrend.

On the 30-minute chart, GBP/USD continues to grow almost every day. There is a hope that it will stop rising near 1.2440, but with such a pace and market sentiment, this level may not create serious resistance. Overcoming the trend line, at least, did not lead to any downward movement. On the 5-minute chart, it is recommended to trade at the levels 1.2143, 1.2171-1.2179, 1.2245-1.2260, 1.2343-1.2360, 1.2396, 1.2444-1.2471, 1.2577-1.2616, 1.2659-1.2674. As soon as the price passes 20 pips in the right direction, you should set a Stop Loss to breakeven. No important reports are scheduled for Tuesday, neither in the UK, nor in the US. Bank of England Governor Andrew Bailey will deliver a speech, which can be very interesting. However, the fundamentals now have a ghost effect on the mood of traders.

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.