The GBP/USD pair also continued to adjust on Monday, but unlike the EUR/USD pair, it managed to continue its downward movement, although it was not very strong. Thus, the pair managed to fall to the level of 1.3488 during the day and work it out perfectly. So far, it is unclear whether the correction will end here and the upward trend will resume, or whether the downward movement will continue and the downward trend will resume? Recall that the fundamental background is not the most unambiguous now, since the Federal Reserve and the Bank of England have embarked on the path of tightening monetary policy, so both the pound and the dollar have support. However, the situation with the pound is now confusing on many timeframes, even on higher ones. Therefore, for some time you should trade in a neutral atmosphere, without thinking about the direction of the global trend. That is, to trade as locally and short-term as possible. No important reports in the UK and the US on Monday, and there was nothing else interesting. Therefore, the volatility equal to 60 points is easily explained.
On the 5-minute timeframe on Monday, the pound/dollar pair faced the problem that the euro/dollar pair managed to avoid. There was also a flat during the day, but there were two levels exactly in the middle of the horizontal channel, which the price crossed throughout the day. As a result of Monday, we decided to remove these levels from the chart. However, not everything is as bad as it may seem at first glance. Let's analyze all the trading signals. At first, the price settled above the 1.3521-1.3531 area, which was a buy signal. However, the price managed to go up only 11 points, so it was hardly possible to make money on this deal. Then the price settled below the above-mentioned area and went down 24 points, just perfectly reaching the level of 1.3488. According to this transaction, novice traders should have already made a profit and immediately opened a long position, as a buy signal was formed. The price rose again to the area of 1.3521-1.3531 and rebounded from it, so the long position should be closed. The profit turned out to be small. According to the same rebound, new short positions should have been opened, but this time the deal turned out to be false and did not bring profit. As a result, we have two profitable and two unprofitable trades. In general, newcomers could end the day with zero or minimal profit, which is absolutely normal for a flat day.
How to trade on Tuesday:
The upward trend is reversed on the 30-minute TF. Therefore, from a technical point of view, now the pair can continue to fall. At least for a while. However, an unsuccessful attempt to overcome the level of 1.3488 may mean the end of the downward march. On the 5-minute TF tomorrow, it is recommended to trade by levels 1.3431-1.3439, 1.3488, 1.3551, 1.3598-1.3603. When the price passes after opening a deal in the right direction, 20 points should be set to Stop Loss at breakeven. There won't be a single important macroeconomic report or a single important fundamental event in the UK and America tomorrow. Therefore, traders will again have nothing to react to during the day. Therefore, you will have to trade exclusively by levels. The flat may persist, so novice traders may not enter the market on Tuesday, if the nature of the pair's movement is already clear in the morning.
