InstaForex

November 2, 2021

How to trade GBP/USD on November 2? Simple tips for beginners. The pair has been flat all day

 The GBP/USD pair on the 30-minute timeframe spent the entire first trading day of the week in a horizontal channel between the levels of 1.3638 and 1.3688. Thus, all day long, signals were formed near the upper and lower boundaries of this channel. As in the case of the euro/dollar pair, after quite active Thursday and Friday, today everything is back to square one, and the volatility was only 50 points. This value is extremely weak for the pound. A single US ISM manufacturing business report was published during the day. However, it had no effect on the pair's movement. Thus, Monday passed in a complete flat, and the trend or any of its manifestations is now absent. Based on this, we still do not recommend considering trading signals from the MACD indicator, which requires a clear trend and trend movement.


The technical picture on the 5-minute timeframe was even more eloquent on Monday. Typical flat. And novice traders are still very lucky that the price almost perfectly reached the boundaries of the horizontal channel, and in the middle of this channel there was no level near which a pack of false signals could form. And so only three sell signals were formed, all three near the level of 1.3688. Three buy signals could also have formed near the level of 1.3638, but each time the price did not reach literally a few points to this level. However, novice traders could make a profit only in case of profit taking near the level of 1.3638, without waiting for a rebound from it. The problem is that each time out of three the price went down at least 20 points, which was enough to place a Stop Loss order at breakeven. Therefore, no loss was received for any of the open trades. However, the highest that the pair went down on Monday was 30 points, so the least Take Profit could not be triggered, and the closest target level - 1.3638 - was not reached even once. Consequently, in the worst case, the beginners simply did not make any profit or loss on Monday. In the best case, they could have earned several dozen points.


How to trade on Tuesday:


At this time, there is still no trend on the 30-minute timeframe, and the volatility increased rapidly at the end of last week and quickly fell at the beginning of the new one. Since there is no trend, we do not advise beginners to follow the signals on the MACD indicator for some time. A trend movement is required for these signals to be relevant. The important levels on the 5-minute timeframe are 1.3612, 1.3638, 1.3688, 1.3708, 1.3740. We recommend trading on them on Tuesday. 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. Novice traders can pay attention only to the index of business activity in the manufacturing sector of the European Union on November 2. This is not the most important report, so it is unlikely that it will have at least some impact on the movement of the currency pair.