The GBP/USD pair continued its upward movement on Friday after leaving the side channel. However, if in the last few days the movement of the pair was trending and even strong, then on Friday it was the opposite. In principle, there were no compelling fundamental or macroeconomic reasons for the strong growth of the British currency this week. Thus, we believe that they are purely technical. But today, the pound traders also took a day off in honor of Christmas. Thus, the price has been moving exclusively sideways all day, but at the same time maintaining an upward trend. The ascending trend line currently supports traders to increase and it is impractical to consider short positions before fixing below it. There was not a single important macroeconomic report or fundamental event on Friday. The volatility was 30 points.
On the 5-minute timeframe, the movement of the pound/dollar pair on Friday was even more eloquent. The price moved exclusively sideways in a very narrow side channel. Volatility dropped due to Friday's semi-holiday status. But it doesn't matter to us why volatility has fallen. It is important that no trading signal was formed today, which means that novice traders should not have entered the market. The price did not even approach any of the important levels today. Therefore, there is nothing to analyze.
How to trade on Monday:
At this time, an upward trend is maintained on the 30-minute timeframe. The pound may continue to grow against the dollar at the end of the year and next week. On the 5-minute timeframe, the important levels are 1.3342, 1.3366, 1.3435, 1.3470. We recommend trading them on Monday. From them, the price can bounce or overcome. As before, we set Take Profit at a distance of 40-50 points. On the 5TH TF, you can use all the nearest levels as targets, but then you need to fix the profit, taking into account the strength of the movement. When passing 20 points in the right direction, we recommend setting the Stop Loss to breakeven. On December 27, not a single interesting report will be published in the UK and America. Also, not a single important event is planned. Therefore, volatility may remain low.
