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How to trade GBP/USD on June 29? Simple tips for beginners.

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Analysis of Tuesday’s deals:

30M chart of the GBP/USD pair

The GBP/USD pair continued to trade in a flat on Tuesday. If it was between the levels of 1.2260 and 1.2329 a few days before, now it has fallen below 1.2260 and ended up in the horizontal channel of 1.2169-1.2329. This channel is not the narrowest, and we did not put its lower border on the chart, because it is not an important level on the 30-minute timeframe. However, you can clearly see that the pair is moving mostly sideways. There were no important events or publications for the British pound or US dollar. Thus, novice traders had nothing to react to. However, the dollar began to rise in price against both the euro and the pound in the afternoon. Thus, both currency pairs again showed the highest degree of correlation. And the technical picture has not changed at all. If the pair manages to consolidate below the level of 1.2169, then it will be possible to count on the resumption of the global downtrend. Until this moment, either a sluggish upward correction or a sideways movement can continue.

5M chart of the GBP/USD pair

Today’s trading signals were mixed on the 5-minute timeframe. Two buy signals were formed in the morning, each of which turned out to be false. The pair in the first case went in the right direction by 12 points, and by 13 points in the second. Therefore, only one deal should have been opened, but it was not possible to set Stop Loss to breakeven for it. And when the price settled below the level of 1.2260, it was necessary to close it manually, a small loss was received. The sell signal near the level of 1.2260 turned out to be stronger than the previous ones, but also not the best. The pair fell to the level of 1.2216, but initially bounced off it and only overcame it a little later. Therefore, it was possible to earn on a short position, but after that it was necessary to open a long position, which again closed at a loss. The last sell signal was also not the strongest, but here at least there was no loss. As a result, novice players could lose several tens of points today, which were offset by profits on the euro/dollar pair.

How to trade on Wednesday:

The upward trend formally remains on the 30-minute timeframe, but the pair has been moving only sideways for the last seven trading days. Therefore, it is very difficult and inconvenient to trade the pair at the moment. In principle, this is perfectly noticeable in all trading signals that have been formed in recent days. We advise beginners to be careful and cautious in the near future, because the chaotic movement may continue for some time. On the 5-minute TF on Wednesday, it is recommended to trade at the levels 1.2040, 1.2106, 1.2170, 1.2216, 1.2260, 1.2329-1.2337, 1.2371. When the price passes after opening a deal in the right direction for 20 points, Stop Loss should be set to breakeven. Scheduled for Wednesday are speeches by Federal Reserve Chairman Jerome Powell and Bank of England Chairman Andrew Bailey. Thus, formally, there will be two important events. But they will be reflected in the charts only if both functionaries report something new and important. Without this, there will be no reaction. The US GDP report will also be published, but we don’t expect much from it either.

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.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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