FX.co ★ How to trade GBP/USD on June 3? Simple tips for beginners.

Analysis of Thursday's deals:

30M chart of the GBP/USD pair

Today, the GBP/USD pair showed the opposite movement to Wednesday. If yesterday the pair fell from 1.2597 to 1.2477, today it has grown from 1.2477 almost to 1.2597. Based on this, we can conclude that there is some uncertainty that has developed at this time in the pound/dollar pair. Remember that the price has settled below the ascending trend line, so the upward trend is formally canceled. However, the pound's failure to settle below the level of 1.2477 shows the weakness of the bears' intentions. Today, the euro and the pound rose well, almost out of the blue. The only report of the day worthy of attention was the US ADP report. It turned out to be much weaker than forecasts - only 128,000 new jobs in the private sector against forecasts of 205-300,000, but at the time when it was released, the pair was already growing with might and main. Thus, now it is impossible to make an unambiguous conclusion about the trend, but the levels are worked out quite accurately. For example, a rebound from the level of 1.2597 may provoke a new fall to the level of 1.2477.

5M chart of the GBP/USD pair

The pair has formed one excellent signal and five ambiguous ones on the 5-minute timeframe today. It all started very well for beginner traders. The price rebounded from the area of 1.2471-1.2477, which was a signal to buy and beginners should have opened long positions at this moment. Further, the price rose almost non-stop to the level of 1.2559, from which it managed to rebound four times. Each time it went down from 12 to 25 points, so no matter how many short positions were opened, all of them were eventually closed by Stop Loss at breakeven.

How to trade on Friday:

The upward trend is formally canceled on the 30-minute time frame, however, the pair continues to remain close to its peaks, so it can still resume. True, the trend line will no longer exist, which complicates the process of trading and determining the trend. The pound must now decide in which direction it should move further: a rebound from the level of 1.2597 - and a new fall to 1.2477, overcoming 1.2597 - and growth, at least to 1.2659. On the 5-minute TF it is recommended to trade at the levels 1.2471-1.2477, 1.2559, 1.2597-1.2616, 1.2659-1.2674, 1.2697. When the price passes after opening a deal in the right direction for 20 points, Stop Loss should be set to breakeven. There are no interesting events planned for tomorrow in the UK. But traders will have something to pay attention to in America. In addition to the NonFarm Payrolls report, which we have already talked about, unemployment and wage levels will be published. This is not as important data as Nonfarm, but it can also affect the pair's movement. But the report on the US labor market still remains the main one.

Basic rules of the trading system:

1) The signal strength is calculated by the time it took to form the signal (bounce or overcome the level). The less time it took, the stronger the signal.

2) If two or more deals were opened near a certain level based on false signals (which did not trigger Take Profit or the nearest target level), then all subsequent signals from this level should be ignored.

3) In a flat, any pair can form a lot of false signals or not form them at all. But in any case, at the first signs of a flat, it is better to stop trading.

4) Trade deals are opened in the time period between the beginning of the European session and until the middle of the American one, when all deals must be closed manually.

5) On the 30-minute TF, using signals from the MACD indicator, you can trade only if there is good volatility and a trend, which is confirmed by a trend line or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 points), then they should be considered as an area of support or resistance.

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.

The MACD indicator (14,22,3) 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 lines (channels and trend lines).

Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

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.