The GBP/USD pair also continued to fall without long swings on Monday. The pound lost another 120 points during the day. As in the case of the euro, there was no good reason for a new fall in the British currency. Moreover, the fall began at night, when the European and US sessions had not even started yet. Of course, it can be assumed that the Asian market also decided to work out the information at the end of last week, thanks to which a new, powerful fall began. But there was no particularly important information. The pound, like the euro currency, began to fall due to a combination of a number of factors and reasons, which we have repeatedly written about. On Friday, for example, there were no extravagant events or reports at all, although formally the fall began exactly at the time when the report on retail sales in the UK was published. There was also no report or important event today, but the pound continued to fall and did so all throughout the day. Traders managed to overcome the important level of 1.2980 on Friday, which had repeatedly kept the pair from falling again, and it seems that this breakthrough provoked not just a fall, but a strong decline.
The pair's movement on the 5-minute timeframe was very promising. However, there was not a single local level between the levels of 1.2674 and 1.2860, since the pair had not been in this price range for a year and a half. Therefore, unfortunately, not a single trading signal was generated during the day. Moreover, according to today's results, it is unlikely to be possible to put a large number of new levels on the chart. Usually they are built according to the peaks of individual days, but today we can only distinguish the low of the day at 1.2697, which is not far from the level of 1.2674. In general, trading may not be much more interesting tomorrow, since there are still very few levels near which signals can be formed. At the same time, we expect to see an upward correction, as the pair has lost more than 300 points in the last two days. This strong movement cannot remain without correction. Moreover, there are no new powerful grounds for continuing the fall of the pound right now.
How to trade on Tuesday:
The downward trend persists on the 30-minute TF. In recent weeks, the pair has been trading absolutely in a very diverse way: either in a flat, then on a "roller coaster", then according to "its own rules". However, if you move to a higher TF, then the downward trend is visible just fine. The pound still cannot even start a proper upward correction, and most factors continue to support the fall of the pound/dollar pair. However, the correction should still begin, but in general, the prospects for the pound still isn't great. On the 5-minute TF tomorrow, it is recommended to trade at the levels of 1.2674, 1.2697, 1.2860. When the price passes after opening a deal in the right direction, 20 points should be set to Stop Loss at breakeven. No important event or report scheduled for tomorrow in the UK, and only a minor report on durable goods orders in America. Thus, we will again expect an upward correction.
