The GBP/USD pair fell on the 30-minute timeframe on Wednesday, November 10. Moreover, the downward movement began early in the morning, when 6 hours remained before the publication of US inflation. However, as in the case of the euro currency, traders began to buy the US currency in advance, anticipating that a surprise awaited them in the afternoon. After it became known about the acceleration of inflation to 6.2%, the dollar rose by 90 points, and in the first half of the day it added 50. Thus, the overall volatility of the day was about 140 points, which is a lot even for the pound. But, on the other hand, this is only good for us, so such movements gave hope for many strong and profitable trading signals. On the 30-minute timeframe today, the price did not reach the trend line, just a few points. And if there was a rebound, then beginners would receive the strongest sell signal. The downward trend continues at this time, and the pair fell to its annual lows around 1.3424. And all because of one report...
On the 5-minute timeframe, not so many trading signals were generated today as might have been expected. On closer inspection, the movements of the pair themselves can hardly be called successful or good. Signals were formed today only about two levels and each strong signal was preceded by one or more false signals. This alignment is very unfortunate for traders, but let's see how you should trade today. The first buy signal was generated when the price bounced off the 1.3517 level. The pair went up after that only 16 points and consolidated below the level of 1.3517. Thus, a new sell signal was formed, which also turned out to be false, since the price went down only 23 points after it. The most interesting thing is that the third signal also turned out to be false, but it, like the fourth signal near the level of 1.3517, should not have been worked out. Thus, according to the first two signals, a loss of 13 points was obtained (on the second trade, Stop Loss was triggered at breakeven). As a result, traders got two more signals near the level of 1.3470. The first, as expected, turned out to be false - the price bounced off the level of 1.3470 - long positions - a loss of 20 points. The last sell signal turned out to be profitable, as the price dropped to the next level of 1.3424, allowing 40-50 pips to be earned. Therefore, the day ended with minimal gains.
How to trade on Thursday:
At this time, the downward trend continues on the 30-minute timeframe. Now we need to understand whether the pair will be able to overcome the level of 1.3424, from which it rebounded last time. If yes, then the movement to the South will continue, if not, then a new round of upward correction will begin. On the 5-minute timeframe, the important levels are 1.3415-1.3420, 1.3470, 1.3517. 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 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 November 11, novice traders should pay attention to the UK third quarter GDP report. There will be an even more or less interesting report on industrial production, but, most likely, the markets will only work out the first indicator.
