The GBP/USD pair increased by 100 points on the 30-minute timeframe on Thursday, but at the same time it still remained inside the horizontal channel of 1.4100-1.4220. Thus, the flat continues, therefore, on the current timeframe, we continue to recommend ignoring all signals from the MACD indicator. Yesterday, novice traders had to pay attention to the US inflation report. However, it was this event that ultimately led to the main movement of the day. To be honest, it was very difficult to work it out. Since this report was very important, the response to it was appropriate. Especially considering the fact that the consumer price index has exceeded the forecast value. Thus, the dollar's fall on Thursday is absolutely logical. But it does not affect the current technical picture in any way.
The picture of the pair's movement on the 5-minute timeframe reflects in more detail what happened during the past day. The movements in the European trading session were not the most pleasant, and in the US session, the quotes just surged on the US consumer price index. The first signal was formed early in the morning and cannot be called accurate and clear. At the moment when it became clear that the quotes were still below the level of 1.4111, the price rested on the next level of 1.4091, and then to the level of 1.4081, from which it eventually rebounded off, forming a buy signal, which also was very fuzzy. Theoretically, novice traders had the right to open long positions here. But, firstly, all the signals up to this point were very inaccurate. Second, US inflation should have been published within a few hours. Thirdly, even if the deal was opened, then at the beginning of the US trading session, the Stop Loss should definitely be set to breakeven. Thus, even if the newcomers opened long positions, they closed by Stop Loss, because before making its impressive jump to the upside, the pair initially dropped to almost the level of 1.4091. All subsequent trading signals (after the publication of inflation) should have been ignored altogether, as the movement became very strong and uncontrollable.
Trading tips for Friday:
At this time, the pound/dollar pair continues to trade in the horizontal channel of 1.4100-1.4220 on the 30-minute timeframe. Therefore, we still recommend not tracking signals from the MACD indicator until the trend movement has recovered. The important levels on the 5 minute timeframe are 1.4111, 1.4165, 1.4191 and 1.4219. We recommend trading with them. The price can rebound off them or overcome them. As before, we set Take Profit at a distance of 40-50 points. At the 5M TF, you can use all the nearest levels as targets, but then you need to take profit, taking into account the strength of the movement. When passing 20 points in the right direction, we recommend setting Stop Loss to breakeven. Bank of England Governor Andrew Bailey is set to speak on Friday in the UK, which is potentially a very important event. Also, early in the morning, the report on GDP for April, as well as industrial production, will be published. We believe that macroeconomic reports will have little impact on the pair, and in Andrew Bailey's speech, everything will depend on what the head of the Bank of England says.
