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Forex Traiding

Analytics and trading signals for beginners. How to trade the GBP / USD currency pair on February 23? Analysis of Monday deals.

DATE OF PUBLICATION: 2021-02-22 21:36:45 Hourly chart of the GBP / USD pair. The GBP / USD pair on Monday, after a minimum correction, resumed its upward movement. Thus, the trend for the pound / dollar pair remains ascending, therefore long positions remain in priority. Unfortunately, buy signals are not often generated lately. This is because the nature of the current upward movement is not entirely standard. Recently, the price has often been generating false signals, but a strong uptrend remains. Thus, it is often impossible to open trading positions for the pound. However, today it was still possible to do this, since during the day the MACD indicator came close to the zero level, around which it turned upward, forming a buy signal. This signal is circled in the illustration. Novice traders could open long positions at 1.4024, so they are currently in profit of about 60 pips. This is a great result. You can close this position right now, as the profit level is quite good. We can wait for the MACD indicator to reverse down. Monday, February 22, there were no major reports published in the UK or America. There was also not a single important event that day that could provoke an upward movement. However, the markets do not need any news or data in recent months to buy the pound sterling. We have already repeatedly said that the fundamental and macroeconomic backgrounds do not affect the movement of the pair in any way. The “speculative growth” continues. This fact must be taken into account when analyzing a currency pair. This factor explains the frequent formation of false signals and ignorance of macroeconomic statistics. Tuesday, February 23, in the UK, a fairly important indicator of the unemployment rate, as well as less important reports on applications for unemployment benefits and wages. However, we believe that these reports will be ignored. Thus, the nature of the movement of the pound / dollar pair will most likely not change tomorrow. We still recommend that you pay more attention to technical factors than others. Also, the pair may be strongly influenced by the news of the approval by the US Congress of a new stimulus package worth 1.9 trillion dollars. However, when such news will go to the media is impossible to predict. On February 23, the following scenarios are possible: 1) Buy orders are relevant, as a new uptrend line has been formed. Thus, novice traders are again recommended to wait for the downward correction and the formation of a buy signal in the form of an upward reversal of the MACD indicator or a price rebound from the trend line. In this case, the targets will be located at a distance of 50-60 points from the entry point. 2) Sell orders have lost their relevance again, therefore, in order to be able to consider them, now again you need to wait for the upward trend line to be overcome. Even if it happens tomorrow, it is unlikely that the pound will lose much after this event. At the moment, the price and the trend line are separated by about 180 points. What is on the chart: Price levels of support and resistance – levels that are targets when opening buy or sell. You can place Take Profit levels near them. Red lines are channels or trend lines that display the current trend and show which direction it is preferable to trade now. Up / down arrows – show when reaching or overcoming which obstacles to trade for an increase or decrease. MACD is a histogram and a signal line, the crossing of which is a signal to enter the market. Recommended for use in conjunction with trend plots (channels, trend lines). Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement. Beginners in the Forex market should remember that every trade cannot be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time. Material provided by InstaForex – Source – InstaForex

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