The GBP/USD pair also continued its downward movement on Thursday. Moreover, it is much stronger than the EUR/USD pair. Also, the pound managed to leave the descending channel, which we initially called formal. We said that almost any correction will lead to the fact that the price will leave the channel, but this will by no means guarantee that a strong growth will begin for the pair. This is what happened in practice. A correction was not even required. The pound lost another 80 points today, although the UK did not release any important report, and the market ignored the US GDP data. Thus, once again it can be noted that the market is getting rid of the pound for geopolitical reasons, and also possibly from the "foundation". Although day after day it is becoming less and less true, since the difference between the monetary policies of the Federal Reserve and the Bank of England is not so in favor of the Fed that the pound lost 500-600 points in just a week. As a result, the downward trend continues, but it can end at any time.
The pair's movement on the 5-minute timeframe was not bad. Several trading signals were generated, most of which turned out to be profitable. First, the pair bounced off the level of 1.2502, forming a buy signal. Since there were as many as 100 points to the nearest target level of 1.2601, the long position should have been closed manually. The pair was able to go up 55 points, so there were plenty of opportunities to close the deal and make a profit. Next, a sell signal was formed near the level of 1.2502, followed by another one. Here it was necessary to open short positions, also immediately counting on their manual closure, since the nearest target level from below was also far enough away. Today's low is the 1.2410 level, which we did not encounter. As a result, the pair went down 45 points, then returned to the level of 1.2477 and bounced off it, forming another sell signal, and then it went down another 46 points. Therefore, novice traders had plenty of opportunities to close each trade in profit. Not one false trading signal.
How to trade on Friday:
The downward trend continues on the 30-minute timeframe. It is difficult to say how long the pound will continue to fall, since the market does not react to macroeconomics at this time. That is, even a potentially important event absolutely does not guarantee an upward reversal for the pair. However, the decline cannot continue forever. On the 5-minute TF tomorrow it is recommended to trade at the levels of 1.2410, 1.2477, 1.2502, 1.2601, 1.2674. When the price passes after opening a deal in the right direction for 20 points, Stop Loss should be set to breakeven. Again, no major events or publications are scheduled for tomorrow in the UK. In America, the calendar of macroeconomic events contains only secondary reports, such as changes in the level of spending and income of the American population. We believe that such data will not provoke any market reaction. However, the pound, even in the absence of news, can calmly continue to fall.
