December 27, 2021

How to trade GBP/USD on December 27? Simple tips for beginners. The pound died on Friday, but promised to resurrect

 The GBP/USD pair showed volatility equal to 29 points. There is nothing surprising in this, since Friday was a half-day on the foreign exchange market, and trading stopped 3 hours earlier than usual. Christmas was celebrated all over the world on Saturday, so there was practically no trade on Friday. However, the upward trend remains for the pound, as evidenced by the uptrend line. Thus, before the pair settles below it, novice traders should consider long positions on this timeframe. However, it is completely incomprehensible how the pair will trade on New Year's week. On the one hand, a drop in volatility to almost zero will be an absolutely logical development of events. On the other hand, the pound traded quite briskly during the Christmas week. Macroeconomic statistics will be scarce, but it was also scarce this week.


On a 5-minute timeframe, the movement of the pound/dollar pair on Friday does not even need any comments. The pair moved sideways all day and did not even approach the levels around which signals could form. Thus, not a single signal was generated during the day, which is just fine, since with a volatility of 29 points, there would be a lot of false signals. Perhaps this is all that can be said about the pair's movement on Friday. On Monday, the situation may be as similar as possible, since there will be no interesting macroeconomic plan again. Moreover, the holidays continue and will only end next week.


How to trade on Monday:


At this time, the upward trend is maintained on the 30-minute timeframe. Therefore, before the price settles below the trend line, preference should be given to long positions. The important levels on the 5-minute timeframe are 1.3342, 1.3366, 1.3435, 1.3470. We recommend trading on them on Monday if there is at least some movement. The price can bounce from them or overcome. 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 December 27, not a single interesting report will be published in the UK or America, not a single important event planned.