The GBP/USD pair traded in different directions on Tuesday. But at the same time, during the day, it reached key levels and formed good trading signals around them. Therefore, despite the rather low volatility, the pair formed a number of good signals, corrected itself, and maintained a downward trend. The downward trend line remains on the 30-minute, so now short positions on the pair remain more preferable. In general, the pound continues to fall against the dollar after being in growth for more than a month. Today, there were practically no macroeconomic statistics either in America or in the UK, but the pair still did not stand in one place, and in the afternoon it also showed growth that was not weak. The results of the Federal Reserve meeting will be summed up tomorrow, which may have a strong impact on the pair's movement and its prospects. We believe that the downward trend will continue after tomorrow, but in any case we have a guideline in the form of a downward trend line.
On the 5-minute timeframe, the movement of the pound/dollar pair for most of the day proceeded between the levels of 1.3439 and 1.3488. The first sell signal was formed in the form of a price rebound from the level of 1.3488. It should have been reached, although it was not the most accurate, because the price bounced off it three times. Nevertheless, it turned out to be strong, as the pair rushed down and stopped falling only near the level of 1.3439, from which it also rebounded, but much more clearly and accurately. Therefore, beginners could close short positions here and open longs. The price returned to the level of 1.3488 during the US trading session and this time it crossed an important level. Therefore, formally, it was possible to stay in the longs until the evening. However, wherever traders closed a long position, they still made a profit on it. As a result, both deals closed in profit, which could amount to 60-70 points.
How to trade on Wednesday:
On the 30-minute TF, the pair began to adjust after two bounces from the 1.3440 level. So today it may even continue to grow towards the trend line as part of an upward correction. As we have already said, there could be any form of reaction to the Fed meeting, but we still expect that the general mood of traders will not change after it. Consequently, we expect a resumption of the fall of the pound. At this time, short positions are more relevant, as the downward trend continues. On the 5-minute TF tomorrow, it is recommended to trade by levels 1.3366, 1.3414, 1.3439, 1.3488, 1.3521-1.3531, 1.3572. There won't be a single important publication or other event in the UK tomorrow. But in the US, the announcement of the results of the meeting of the Fed Monetary Committee and the speech of Fed Chairman Jerome Powell will take place. These are events in the evening, so before they start, novice traders can leave the market or put a Stop Loss on all transactions.
