The GBP/USD pair on Friday, as well as the EUR/USD pair, moved very inconveniently for traders. It seems that initially the market was set up for a new round of purchases of the US currency, but in the middle of the day, something happened that led to a pullback upward. Perhaps it was the entry of a major player into the market. Perhaps it was important information not available to the masses. Anyway, in the middle of the day, there was a pullback of 70 points up, which spoiled the whole picture. At the same time, the downward trend persists, with very few levels below the current price values, because the price has not been so low for a very long time. However, as we have already said, now a lot in the foreign exchange market depends on geopolitics. Since the situation in Ukraine is not improving and threatens to only worsen every day, it is not surprising that the market continues to get rid of the most risky assets and transfer its funds into dollars. Therefore, we believe that the US currency has excellent chances to continue strengthening in pairs with the euro and the pound.
On the 5-minute timeframe, Friday's technical picture is even worse than for the euro/dollar. All trading signals of the day were formed around the same level of 1.3082. 7 signals. This indicates a flat, but still, looking at the movement on Friday, it can hardly be said that it was flat. Nevertheless, it was quite difficult to trade in such conditions, but at the same time, we remind you that every day the pair cannot move as traders would like and form exceptionally strong signals. It remains only to understand how to trade on Friday. Unfortunately, the picture here is worse than for the euro/dollar pair. The first two signals did not lead to a move in the right direction even by 20 points, so newcomers could get a loss on both trades. Fortunately, a small one. All the next five signals near the 1.3082 level should have been ignored since, at the time of their formation, at least two unprofitable trades had already been made. There were simply no signals near other levels.
How to trade on Monday:
On the 30-minute TF, the pair continues to trade with a decrease and the downward trend is already quite strong and long. And we don't see any reason why it can't continue for a few more weeks. Although, of course, sooner or later it will end. But its completion can be identified at least by fixing the price above the trend line. In the meantime, the price doesn't even come close to this line. On the 5-minute TF tomorrow, it is recommended to trade at the levels of 1.2913, 1.3082, 1.3124-1.3134. 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 important events or publications scheduled for tomorrow in the UK and the USA. If the pair continues to fall during the day, then there are simply no levels below (the level of 1.2913 is far enough). You can try to use Friday's minimum of 1.3026, but it is not extreme and is rather doubtful. You need to be prepared for the fact that there will be few signals tomorrow, and you will need to close trades manually.
