InstaForex

October 28, 2021

How to trade GBP/USD on October 28? Simple tips for beginners. The pound has been swinging all day

 The GBP/USD pair managed to break out of its horizontal channel at 1.3740-1.3833 on the 30-minute timeframe, in which it spent at least five days. However, this did not make it easier, since there is still no trend movement, as well as a trend line or channel. Today the price went below the 1.3740 level twice, but each time it returned to this level and eventually settled above it. Thus, compared to yesterday, nothing has changed. There is still no trend, therefore, it is not recommended to consider signals from the MACD indicator. Only one more or less significant report was published during the day, which in fact turned out to be quite neutral and did not provoke any reaction from traders. Thus, there were movements today, but, first, it was weak (the total volatility of the day is only 70 points), and secondly, it was a classic "swing", when the price is constantly changing the direction of movement.


The technical picture is also very eloquent on the 5-minute timeframe. Novice traders can take a good look at the swing that we talked about above. They started in the middle of the European trading session, when the first sell signal was formed. The price broke through the level of 1.3740, so it was necessary to open short positions, although the nearest target was quite close - only 32 points. Nevertheless, in conditions of low volatility, this is even good. A few hours later, the price dropped to the specified level and bounced off it, which served as a signal to close short positions and open longs. The profit on the first trade was 12 points. At the same moment, long positions should have been opened. The price then returned to the level of 1.3740 and bounced off it twice very imprecisely. Thus, at this point, it was necessary to close longs at 15 points profit and open new short positions. The price returned to the level of 1.3708 again and bounced off it again: we close the shorts and open new long positions. Profit - another 11 points. The last long position could have closed even above the level of 1.3740, since this time there was no rebound from it. Therefore, a long position could be left open until the evening and closed manually at a profit of about 30 points. Thus, despite the flat, today we managed to make good money on the pound, only about 68 points.


How to trade on Thursday:


At this time, there is no trend on the 30-minute timeframe, and the volatility is low again. Since there is no trend, we do not advise beginners to follow the signals on the MACD indicator for some time. For these signals to be relevant, a trend movement is required. The important levels on the 5-minute timeframe are 1.3688, 1.3708, 1.3740, 1.3814. We recommend trading on them on Thursday. The price can bounce 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. On October 28, novice traders can turn their attention only to the US GDP report for the third quarter. The extent to which the actual value does not correspond to the predicted one will be of particular importance.