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Forex Traiding

Analytics and trading signals for beginners. How to trade the GBP / USD currency pair on March 9? Analysis of Monday deals. Training

Hourly chart of GBP / USD. GBP / USD on Monday continued its movement on Friday. If the euro / dollar pair continues to move down, which is surprising to us, then the pound / dollar pair is trading differently every day, which is also surprising. Although, if we take precisely today, then it was the pound / dollar pair that traded most logically. No important macroeconomic statistics were released today, no important news came out. Thus, flat is the most appropriate movement for such a day. Unfortunately, someone who, but the pound rarely pleases traders with the logic of movements. As a result, we have a continuing downtrend signaled by a very formal downtrend line. “Formal” – because it has already been rebuilt three times and with such a movement can be rebuilt three more times. What is the point in it then, if it is constantly being rebuilt? In addition, we have a kind of triangle, the price exit from which can show in which direction the pair will move in the next trading day. But in general, we continue to insist that the movement is extremely complex and does not yet correlate with the euro / dollar pair, although the factors that have an impact seem to be the same. In the last article, we recommended considering only short positions, and even then only if a strong sell signal from MACD is generated. MACD got to the zero level with great difficulty, and only at the end of the trading day. Thus, there is no reason to open any positions on the pair so far. On Monday, March 8, there was not a single important report in the UK and the US. During the day, the Governor of the Bank of England Andrew Bailey made a speech, but nothing important was present in his speech. Mr. Bailey said that he sees positive changes in the UK economy, but also urges not to forget all the structural problems. In general, this information did not have any effect on the movement of the pair, and there was simply no other. On Tuesday, no important events are planned in the UK and the US, therefore, in theory, tomorrow the movement of the pair will be the same as today. Thus, we recommend that novice traders re-evaluate the situation in the morning and enter the market only if the flat ends. By the way, the triangle that is in the illustration and which we talked about above can help to determine this moment. Overcoming any of its boundaries can signal the intention of traders to move the pair in that direction. On March 9, the following scenarios are possible: 1) Buy orders are not relevant now, as there is a downtrend line. Buyers need to wait for the price to consolidate above this trendline to be able to consider bull trading. We remind you that this trend line is rather formal, so you should be careful when opening any positions and do not forget about Stop Loss. On Tuesday, the price is unlikely to be able to get to the trend line and overcome it. 2) Sell orders are relevant, as the downtrend continues. Novice traders may consider opening short positions tomorrow if the price consolidates below the triangle. Or it will exit through its upper border, and then the MACD indicator will generate a sell signal. Or the price will subsequently bounce off the downtrend line. In each case, Take Profit can be placed 40-50 points below the entry point. Also, do not forget about Stop Loss in breakeven What is on the chart: Price levels of support and resistance – levels that are targets when opening purchases or sales. You can place Take Profit levels near them. Red lines – 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 – histogram and 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 –

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