FX.co ★ Analytics and trading signals for beginners. How to trade GBP/USD on May 31? Analysis of Friday. Getting ready for Monday

Analysis of previous deals:

30M chart of the GBP/USD pair

The GBP/USD pair on the 30-minute timeframe during the last trading day of last week was trading in different directions, while remaining inside the horizontal channel of 1.4100-1.4220, in which it has been for two weeks. Inside this channel, the pair is trading without any logic at all, so any trading is clearly difficult now. The upward trend line was surpassed a few days ago, so there is no trend now. Although in fact, the upward trend persists, as the pound continues to settle near its 3-year highs. Therefore, it can overcome them at any time. In our recent reviews, we recommended that you temporarily not track signals from the MACD indicator, since it forms a lot of false ones in the flat. As you can see, last Friday, the strongest signal of the day (the first circle) was really difficult. You should continue to ignore the signals from the MACD indicator while the pair is inside the horizontal channel.

5M chart of the GBP/USD pair

The GBP/USD pair traded in a much more upbeat manner on the 5-minute timeframe, as usual. Although the signals were not the most accurate and best. All three signals were formed near the level of 1.4165. First, the pair surpassed this level, which novice traders could work out with short positions. However, this signal also turned out to be false, and the price could not continue to move down. It turned up and returned to the level of 1.4165, from which it rebounded again. At this time, novice traders still had to have open trades on the first sell signal, which should not be duplicated. But the downward movement did not continue after the second sell signal, and the price subsequently settled above the level of 1.4165. Therefore, in the end, beginners could get about 16 points of loss on this transaction. But long positions on the pound should not have been opened when the pair surpassed the level of 1.4165, since before that, it turns out, this level already had two false signals formed, after which the necessary movement did not continue. Not the best day in terms of trading. The macroeconomic reports were no better. No important event or report from the UK during the day. On the other hand, there are several minor reports (the release time is marked with a check mark in the chart) in America, which did not have any impact on the pair's movement.

Trading tips for Monday:

The situation on the 30-minute timeframe is confusing at this time, as the upward trend line has been overcome, but the downward movement has not really begun. And the whole picture is becoming more and more like a flat every day. It is because of the flat that the MACD indicator cannot form a strong signal. Also, it is not clear which way we should trade in the flat. Therefore, we recommend that you temporarily do not track signals from the MACD on this timeframe. The important levels on the 5-minute timeframe are 1.4135, 1.4165, 1.4210, 1.4219 and 1.4232. From them, the price can rebound or overcome them. As before, Take Profit is set at a distance of 40-50 points. On the 5M TF, you can use all the nearest levels as targets, but then you need to take profit, taking into account the strength of the movement. If you pass 20 points in the right direction, we recommend setting the Stop Loss to breakeven. There are no major publications or events scheduled for Monday in the UK or the US. However, the pound/dollar pair was already trading quite actively at night. However, today there is a high probability of falling volatility and maintaining the flat.

On the chart:

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 the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator 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 lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.