The GBP/USD pair spent the first trading day of the new week by trading actively. Perhaps volatility was not high, however, compared to the euro/dollar pair, which stood in place all day, the pound was trading quite actively. Especially considering the lack of macroeconomic reports and fundamental background on this day. There was only one signal that was generated on the 30-minute timeframe during the day, which deserved attention. The upward reversal of the MACD indicator occurred early in the morning, at the very beginning of the European trading session. There was no upward trend line at that time, however, after the price crossed the downward trend line on Friday, an upward trend was formed for the pound/dollar pair. This means that novice traders had to track buy signals. Thus, the only signal that was formed on Monday should have been worked out. After it appeared, the pair moved up by another 60 points. Therefore, the deal could be closed by Take Profit (we usually recommend 40-50 points for the pound) or by the reversal of the MACD indicator downward (then 38 points could have been earned). And over the past couple of hours, the quotes have also managed to settle below the new upward trend line, so the trend has already changed to a downward trend.
Several signals were generated on the 5-minute timeframe on Monday. Take note that not a single report was published today, and we did not receive any important news either. Considering the fact that it is Monday, it was necessary to look for new levels, from which the price would rebound or surpass. The 1.3755 level appeared this morning, so it was impossible to open a rebound trade near it. The 1.3810 level, to which the price rose during the day, formed on Friday, and the price crossed it today, so it was also possible to open long positions on the current timeframe. The only thing that should have deterred beginners from buying is that the pair had already gone up 70 points when this signal was formed. If it was a rebound, it would be a different matter, and the buy signal should have been missed. As you can see, this would have been the right decision, since the price even rose to the 1.3846 level (which was also absent at that time) and turned down, surpassing the 1.3810 level from top to bottom after a while. At this point, a sell signal was formed and it could be worked out. As a result, the price went down by around 38 points after it was formed, but at the same time the MACD indicator turned to the upside, and the nearest target level was not reached. Therefore, this trade would most likely close in zero profit.
How to trade on Tuesday:
On Tuesday, we recommend trading according to a new downward trend that formed on the 30-minute timeframe. However, we will not receive important reports both today and tomorrow. Since the trend line has been crossed, we should look for sell signals tomorrow. The MACD indicator should be discharged to the zero level and you can only open short positions after that. Theoretically, you could open short positions once the trend line is surpassed. However, at that moment the price had already gone down by around 75 points, and it was already approaching the evening. In general, if you open Sell, then only do so with a short Stop Loss and at your own peril and risk. Although the probability of further downward movement is high. We also recommend that you pay attention to the 1.3730 level tomorrow, from which there may be a rebound or the quote may surpass it. On the 5-minute timeframe, we recommend paying attention to levels 1.3755, 1.3810 and 1.3730 tomorrow. Signals can be generated around them. As before, we set Take Profit at a distance of 40-50 points. When passing 20 points in the right direction, we recommend setting Stop Loss to breakeven.
