How to trade GBP/USD on April 13. Simple trading tips and analysis for beginners

On Wednesday, the GBP/USD pair traded almost the same as the EUR/USD pair, with the only exception being that the pound edged down in the first part of the day. But in the US session, after the US inflation report was released, GBP surged. After the price overcame the descending trendline, the upward movement was perfectly logical. The pound's growth in recent weeks raises many questions, but from a technical perspective, the upward movement on Wednesday was absolutely expected. Naturally, the inflation report could have spoiled everything, as its value could have been completely different. However, Bank of England Governor Andrew Bailey's speeches didn't spoil anything, because he was quite restrained again and made bland statements. Thus, the market is doing anything it can to make the pound rise, whether it has a good reason or not.

The trading signals on the 5-minute chart were practically perfect. In the first part of the day, a sell signal was formed near 1.2444, afterwards the price fell to the target level of 1.2396. Beginners could have earned about 25 pips on the short position. Two bounces off the 1.2396 level occurred just half an hour before the inflation report was published, so traders could have opened a long position here as well. Of course, it was necessary to set a Stop Loss, as the movement could have been reversed. But as we can see, everything worked out, and the pair rose to 1.2471, where it was possible to lock in a profit of about 50 pips. Then, it got even better with the pound between the 1.2444 and 1.2471 levels. And you could've gained a lot of profit here. Overall, the day turned out to be quite successful and profitable.

On the 30-minute chart , the GBP/USD pair resumed its upward movement, breaking through the trendline. I believe that the upward movement will be unfounded this time as well, because the pound has been moving this way for several weeks already: it appreciates even when there are no reasons. On the 5-minute chart, you can trade at the levels of 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. On Thursday, the UK will release reports on industrial production and monthly GDP, which aren't that important. And we also have a not-so-important producer price index in the US. The pound can still trade higher regardless of the results.

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.