The GBP/USD pair on the 30 minute timeframe on Thursday, November 18, continued to move up after breaking the downtrend two days earlier. So now an upward trend has formed for the pound/dollar pair, which has its own trend line. This trend is very weak, which is clearly seen from the slope of the trend line. Nevertheless, it is there, and the price is approaching the level of 1.3517, overcoming which will allow the pound to continue to rise. Note that during this day, neither the UK nor America has had a single important macroeconomic report. Thus, newcomers had nothing to pay attention to during the day. And the markets had nothing to react to during the day. Therefore, we would call the current growth of the pair exclusively corrective, since the pair had been falling for a long time before it began.
On the 5-minute timeframe, the movement of the pound/dollar pair looks even more boring on Thursday. It seems that the price did not blatantly stand in one place, but it is clearly visible that it moved mainly sideways. A single signal was formed in the US session when the price bounced off the level of 1.3470. Moreover, "bounced" is a big word, since the signal to buy was formed for several hours. But nevertheless, it formed and even allowed novice traders to earn a bit, since the price still went up and passed around 15-20 points in the late afternoon. And the long position should be manually closed in the late afternoon, since it was not possible to reach the nearest target level of 1.3517, and Take Profit was placed at a distance of 40 points and did not work.
How to trade on Friday:
At this time, an upward trend has formed on the 30-minute timeframe, which will persist as long as the price is above the trend line. Thus, long positions are now preferred. A rebound from a trend line can be viewed as a buy signal, a breakdown - as a sell signal. The important levels on the 5-minute timeframe are 1.3416, 1.3470, 1.3517, 1.3579. We recommend trading on them on Friday. 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. UK retail sales report for October will be released on November 19. Not the most significant report, but if its actual value differs greatly from the predicted one, then a 20-30 points reaction from the markets can be seen. Otherwise, tomorrow will not be more interesting than today.
