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Forex Traiding

Analytics and trading signals for beginners. How to trade the GBP / USD currency pair on February 24? Analysis of Tuesday’s deals. Training

DATE OF PUBLICATION: 2021-02-23 21: 07: 09Hourly chart of the GBP / USD pair. The GBP / USD pair on Tuesday continued its slightly weakened upward movement, but it weakened only in the context of one day. On the whole, it remains confident and strong enough. Thus, in general now, of course, it is recommended to consider bull trading. However, as we have noted more than once, now is not the best time to trade the pound / dollar pair. The problem is that few signals are being formed now, and among them there are a lot of false ones. For example, no signal was formed during today, although the pound / dollar pair as a whole continued to move upward. At the same time, the MACD indicator as a whole was moving down today. This phenomenon is called uncorrelation between price and indicator. The indicator is declining not because it reacts to a price decline, but because it has nowhere to grow further. The MACD indicator is also worn for the movement of the “trend-correction-trend-correction” type, and not for the movement of the “trend-trend-trend-trend” type. Since the morning of February 18, there has not been a single round of correction for the pair, so the indicator has been discharged a lot in recent days, despite the direction of price movement. Selling the pair, according to our recommendations in the last article, was not recommended today. On Tuesday, February 23, several interesting reports were published in the UK. However, as it is already clear now, at the end of the day, none of them provoked a movement in the market. In fairness, it should be noted that traders rarely react to data on wages or changes in the number of applications for unemployment benefits. In addition to these two reports, the unemployment rate was also published today, which rose by 0.1%, however, this report did not cause any reaction. Like Jerome Powell’s evening speech to the US Congress. Tomorrow, February 24, the UK will host a speech by Bank of England Governor Andrew Bailey, as well as a parliamentary hearing on the Bank of England’s monetary policy report. These two events are important enough, as the British central bank has long been walking on the edge of the chasm called “negative rates”. The latest comments on this issue by Andrew Bailey spoke in favor of the fact that the Central Bank is not going to implement these plans in the near future. However, some other members of the monetary committee take a slightly tougher and more radical point of view. One of them (Jonathan Haskell) will also give a speech tomorrow. Thus, it is these speeches, and not Jerome Powell’s speech in the US Congress that may have an impact on the movement of the pound / dollar pair on Wednesday. On February 24, the following scenarios are possible: 1) Buy orders are relevant, since a new ascending line has been formed trend. 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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