Analytics and trading signals for beginners. How to trade GBP/USD on March 18? Analysis of transactions. Getting ready for Thursday - Kakiforex.com - Financial Market Media No. 1 in the World Analytics and trading signals for beginners. How to trade GBP/USD on March 18? Analysis of transactions. Getting ready for Thursday Analytics and trading signals for beginners. How to trade GBP/USD on March 18? Analysis of transactions. Getting ready for Thursday
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March 18, 2021

Analytics and trading signals for beginners. How to trade GBP/USD on March 18? Analysis of transactions. Getting ready for Thursday

 The GBP/USD pair was more active than the EUR/USD pair on Wednesday. The pair rose to the resistance level of 1.3927 in the early morning, rebounded from it and turned down. The pair's upward movement in the morning was accompanied by an upward reversal of the MACD indicator. That is, a buy signal was formally generated. However, we have repeatedly said that when a signal is formed on a strong candlestick, it should be eliminated. Yes, and the MACD indicator did not really run out after a small round of correction. But later the MACD indicator began to slow down its upward movement. The indicator window clearly shows that each bar of the histogram was getting weaker and weaker, and the signal line was getting closer and closer to the histogram. Therefore, a sell signal was clearly brewing, which eventually formed. At this point, it was possible to switch to a lower timeframe and clarify the picture of what is happening on it.


As soon as the sell signal matured on the 1-hour timeframe, two sell signals have already formed on the 5-minute timeframe. The first one could be skipped, since it was the first, but the second one almost perfectly coincided with the signal on the hourly timeframe. Therefore, it was possible to open short positions in this place and at the moment traders are in profit of about 20 points on this signal. Thus, Stop Loss should be moved to breakeven, especially since the results of the Federal Reserve meeting will become known and Chairman Jerome Powell's press conference will begin.


No major report released in the UK on Tuesday, not a single major event. Thus, although the pair did not stand still during the day, there was no fundamental or macroeconomic impact on it. Now the announcement of the results of the two-day Fed meeting will begin, during which traders will find out the central bank's mood, the economic forecast for the coming years and answers to all questions of interest at Powell's press conference.


The main event on Thursday will undoubtedly be the Bank of England meeting and the announcement of its results. As in the case of the Fed, we do not expect any changes in the monetary policy of the British central bank, so the most interesting event will be the summary on monetary policy, as well as speeches by representatives of the monetary committee Jon Cunliffe and Andy Haldane. Naturally, the pound/dollar pair's movement will largely depend on whether economists report anything important to the markets. Another speech from Powell in the evening, so the calendar of events for tomorrow is clearly full of various kinds of speeches. Therefore, you need to be very careful with trading.


You can consider both buy and sell signals since there is no trend for the pound/dollar pair. However, firstly, the technical picture may dramatically change after today's Fed meeting, and secondly, tomorrow's speeches and events can greatly affect the pair's movement as well as the technical picture. Thus, firstly, you should leave the market during all strong fundamental events, or move Stop Loss to breakeven. Secondly, the 1.3862 level. Rebounds can be used as signals. Third, there are MACD reversals in both directions. In case of any incomprehensible situation, we are looking for confirmation on the 5-minute timeframe or we do not risk and do not enter the market.