FX.co ★ How to trade GBP/USD on September 28? Simple tips for beginners.

Analysis of Tuesday's deals:

30M chart of the GBP/USD pair

The GBP/USD pair traded more calmly on Tuesday, but this did not make it easier for traders. The fact is that the pair is now at its absolute lows, that is, the price has never been in this area before the current time. Naturally, there is not a single level at which one could trade. Two levels were formed on Monday, but the distance between them is about 600 points. It may take several days for the price to just get to one of them. As you might guess, the market is still in a state of shock. There are serious capital flows between currencies, between instruments, between markets. Traders and investors, as before, are trying to transfer their capital to the safest assets, so the pound may well continue to fall with the target of 1.0000, which was an absolutely fantastic option a couple of weeks ago. However, reality is changing, and the state of markets and instruments is changing along with it. The only report of the day was the volume of orders for durable goods in the US. Their volume decreased in August by 0.2% with worse forecasts. The charts above and below clearly show that the market's reaction was either completely absent or insignificant.

5M chart of the GBP/USD pair

No trading signals were formed on the 5-minute timeframe for the reasons described above. One new level was formed - 1.0833 - this is Tuesday's high, and it did not take part in the trade. Maybe a signal will form around it on Wednesday. There was a distance of 600 points between the two nearest levels, so it was naive to count on signals forming with a total volatility of the day of 180 points. Moreover, such volatility is very high even for the pound, but most of this movement fell on night trading, and the pair was practically in flat during the European and US trading sessions.

How to trade on Wednesday:

The pound/dollar pair maintains a downward trend on the 30-minute TF. The descending trend line is now quite formal, since the price is located 700 points from it. The market is slowly returning to normal, which can no longer help but rejoice. Several levels may form in the next few days, with which it will be possible to open positions. The main thing is that everything should be done without a new "storm" in the market. On the 5-minute TF on Wednesday it is recommended to trade at the levels of 1.0355, 1.0833, 1.0927, 1.1211-1.1236, 1.1356. When the price passes after opening a position in the right direction for 20 points, Stop Loss should be set to breakeven. There are no major reports or events scheduled for Wednesday in the UK and America. There will be several speeches by representatives of the Bank of England and the Federal Reserve, but it is unlikely that the rhetoric of the members of the monetary committees will tighten or weaken, so that the market will follow their statements.

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 US 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.