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Forex Traiding

Analytics and trading signals for beginners. How to trade the GBP / USD currency pair on March 1st? Preparation for trading on Monday.

DATE OF PUBLICATION: 2021-02-28 19:23:22 Hourly chart of the GBP / USD pair. The GBP / USD pair also began a strong downward movement at the end of last week. After the pair had been growing for five months in a row with only occasionally minimal corrections, such a strong downward movement was expected, but unexpected. Unexpected – because hardly anyone could have predicted exactly when the collapse would happen. It happened in the last week of February. The price broke another uptrend line, which again confused the whole technical picture. At this time, the upward trend has been canceled, since the pound / dollar pair fell by more than 300 points in total, however, after such a strong fall, an upward correction is needed. There is neither a downtrend line nor a downtrend channel at this time. Thus, it is not recommended to trade on a rise now, but at the same time it is precisely upward that the price can move on Monday. Trading for a fall has become relevant, but the downward movement is unlikely to continue on Monday. Even the MACD indicator has not yet had time to discharge. Thus, despite the strong movement, it is extremely problematic to reject it. Novice traders should remember that a strong move is not only a good opportunity to make money, but also an excellent opportunity to lose. We recommend that beginners trade according to the most understandable movement patterns. That is, a calm movement with corrections, on which trades should be opened following the trend. There is no such thing now. No important statistics were published in the UK at the end of last week. However, even without this it is clear that the reasons for such a strong growth in the dollar (falling pair = growth in the dollar) lie in the United States. In the article on the euro currency, we have already noted that the reasons are associated with the escalation of the geopolitical conflict in the Middle East and strong macroeconomic statistics from America, which traders have finally decided to work out. The question is what will happen next week. Over the weekend, the US Congress approved a new stimulus package worth 2 trillion dollars and this event may also be reflected in the charts of all currency pairs in which the dollar is present … Tomorrow, March 1, the UK will publish a report on business activity in the manufacturing sector. A similar report will be published in the US, but both reports are unlikely to cause a reaction from the market. First, both major pairs need to correct upward after falling late last week. Secondly, the reports are not the most important. Third, the markets need to digest the information about the approval of the new stimulus package by the US Congress. Fourth, you need to understand what degree of intensity the escalation of the conflict in the Middle East will reach this time. On March 1, the following scenarios are possible: 1) Buy orders have lost their relevance, but at the same time, an upward movement is more likely on Monday. It can even be strong, pips per 100, novice traders can try to work it out at their own peril and risk. We would recommend waiting for the markets to calm down before entering the market. 2) Sell orders became relevant after breaking the uptrend line, however, on Monday, an upward movement is much more likely than a downtrend. Thus, in order to be able to consider sell signals, the pair needs to correct upward. After that, you can track the signals to sell from the MACD. What’s 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 you should 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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