On Tuesday, GBP/USD went down to 1.3192, rebounded from it, and stayed within the sideways channel. The pair has been traded in the range of 1.3192 and 1.3268 for three days. However, the quote may leave the channel on Wednesday because the FOMC meeting is highly likely to trigger market jitters. Anyway, this could happen only by the close of the trading day. The pair is expected to be less volatile during the day. Therefore, it may continue to move within the sideways channel. The ascending trends line was removed from the chart. In the United States, not a single important report was published on Tuesday. Meanwhile, data on the unemployment rate, claimant count change, and average earnings in the United Kingdom boosted the pound sterling. However, the results did not trigger an immediate rise, and right after the reports came out, the British currency was edging lower (see the tick mark on the chart below).
On the M5 chart, the movement of the pound/dollar pair on Tuesday was not the easiest at first glance. Indeed, some levels were located close to each other. So, it was important to interpret trading signals around them accurately. The first signal was produced around 1.3208 that was later removed from the chart. It was located 16 pips lower than the level of 1.3192. So, they were to be regarded as a range. The novice could open long positions there. The next signal was generated around 1.3246 that was also removed from the chart. The price broke through it and consolidated below it an hour later. That was the right moment to close long positions. The profit from long positions totaled 17 pips. Traders could open short positions there as well. Another sell signal was produced around 1.3246. The price did not reach the nearest target by the close of the day, so this trade had to be closed manually. The profit from this trade equaled 5-10 pips.
On the M30 chart, the pair is moving in a sideways channel in the range of 1.3192 – 1.3268. The price is likely to attempt to leave the channel today. By the end of the day, beginner traders should already exit the market and expect the outcome of the FOMC meeting. The key levels for December 15 on the M5 chart are 1.3170, 1.3192, 1.3256, 1.3268, 1.3286, and 1.3310. The price may pull back or break through them on Wednesday. A take-profit order is to be set at a distance of 40-50 pips. On the M5 chart, targets are seen at all the nearest levels. In such a case, you should lock in profit taking into account the strength of the movement. A stop-loss order is to be placed at the breakeven point when the quote passes 20 pips in the required direction. On December 15, the United Kingdom reports on its inflation rate, its outcome could affect the market. US retail sales are another important report that could provoke a reaction in the market. At the end of the trading day, the US Federal Reserve will announce its policy decision, which is likely to trigger market jitters.
