Trading plan for GBP/USD on March 11. Simple tips for beginners

GBP/USD showed positive trades for the sixth consecutive day. The pair finally had a logical reason to rise, unlike the last five days. The U.S. released weak reports on the labor market and unemployment, so it was logical for the dollar to fall. We cannot say the same thing about the pound's broad strength, as a result of which, it even left a three-month sideways channel. The pound is rising again, although there were no significant events in the UK. The U.S. only released weak reports on Friday, and Federal Reserve Chairman Jerome Powell's speeches in the US Congress cannot be considered dovish. Therefore, we have a lot of questions about the pound's growth. We believe it has been completely illogical. The ascending channel has a very sharp slope, indicating the complete absence of corrections and pullbacks.

On the 5-minute timeframe, it was possible to make a profit if traders stayed in long positions from Thursday. The pair overcame the area of 1.2787-1.2791, which had long served as the upper border of the sideways channel, on Thursday. Therefore, after the breakthrough, it was necessary and possible to open long positions. But in this case, you had to sit through the night, which is quite risky. On Friday, the pair initially consolidated above the area of 1.2848-1.2860 and then returned to it. It was not possible to earn profit from this buy signal.

On the hourly chart, GBP/USD intends to resume the upward trend, although there are no fundamental and macroeconomic grounds for it. Therefore, the pound may rise in the near future, and news, reports, and events do not mean much to the market now. Since the price has surpassed the level of 1.2791, you may consider long positions with 1.2913 as the target. Volatility remains low, but there is enough of it for the pound to rise every day.

The key levels on the 5M chart are 1.2372-1.2387, 1.2457, 1.2502, 1.2544, 1.2605-1.2611, 1.2648, 1.2691, 1.2725, 1.2787-1.2791, 1.2848-1.2860, 1.2913, 1.2981-1.2993. On Monday, there are no important or at least interesting events planned in the UK and the U.S., so volatility will likely be low, and the pair may attempt to correct lower.

1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.

2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.

3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.

4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, after which all open trades should be manually closed.

5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trendline or trend channel.

6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.

Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.

Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.

The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.

Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.

Beginners should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.