The GBP/USD pair also continued to fall on Friday and managed to overcome the important level of 1.3272. In total, the British pound fell by 120 points during the day, although the volatility of the pair was even higher. The same technical picture as for the EUR/USD pair. The fall of the pair was observed not only at a time when important Nonfarm Payrolls and unemployment reports were published in America. Thus, we conclude that not only American statistics helped the US dollar to grow on Friday. The matter, as usual in recent weeks, is in geopolitics. The situation with the military conflict in Ukraine, if it is not getting worse every day, then it is not getting better. The economic situation in Russia is getting worse every day under the yoke of Western sanctions. And considering that these sanctions are imposed almost every day, the Russian economy has a lot to fall. And investors have somewhere to run from Russian stocks and the Russian ruble. Therefore, it is not surprising that the dollar is now growing across the entire spectrum of the market, because shares of Russian companies on foreign stock exchanges are also sold for rubles.
On the 5-minute timeframe, the movement on Friday was quite good. And the trading signals were not bad either. Although this is natural, since most of the day the price moved only in one direction, and the trend is the best friend of traders. The first sell signal was formed when the price was fixed below the level of 1.3310, and literally, an hour later the price bounced from the same level from below. Therefore, novice traders could open a short position. In the future, the price dropped below the level of 1.3272, and then below the level of 1.3241. That is, two more strong sell signals were received, but at that time a short position was already open, so you just had to stay in it. The pair could not reach the level of 1.3172, so the deal should have been closed manually in the late afternoon. As a result, only one transaction was opened, profitable and it was possible to earn about 80 points on it. Excellent result.
How to trade on Monday:
On the 30-minute TF, the pair continues its downward movement, although not as fast as the EUR/USD pair. Theoretically, it is now possible to build a channel or a trend line, but now the downward trend is visible even without them. Much more important is the geopolitical factor, which will continue to push the pair down if the situation in Ukraine continues to deteriorate. On the 5-minute TF tomorrow, it is recommended to trade by levels 1.3134, 1.3172, 1.3241, 1.3272, 1.3310, 1.3365. When the price passes after opening a deal in the right direction, 20 points should be set to Stop Loss at breakeven. There are no major macroeconomic or fundamental events scheduled for tomorrow in the UK and the US. Therefore, if the geopolitical background does not deteriorate, the pair may begin an upward correction. However, if we see a powerful downward movement again, we should not be surprised either. The markets are still in a state of shock from what is happening.
