Analysis of Wednesday's deals:

30M chart of the GBP/USD pair

The GBP/USD pair continued to fall on Wednesday, but not as strong as the day before. It was even possible to form a descending channel, which greatly simplifies the procedure for determining the trend. At the very least, it gives clear guidelines within which the British pound can continue to fall. At the moment, the pair's quotes are near the lower border of the channel, so the correction, as they say, is brewing. We believe that if not on Thursday, then on Friday it will begin. And given that the euro and the pound have been trading almost identically in recent months, we should expect a correction in the euro as well. We believe that it is highly likely that the correction will begin on Friday, when the most important statistics on the labor market and unemployment are released in the US. Considering that the dollar has already grown very strongly this week, we believe that the dollar will fall regardless of the value of the reports. Thus, in the long term, the fall of the British currency, which has updated 2-year lows this week, may continue, but the pair should also correct at least a little.

5M chart of the GBP/USD pair

The movement on the 5-minute timeframe was not quite trendy, so a lot of trading signals were formed. It should be noted right away that the level of 1.1898 is yesterday's low. The first sell signal was formed at the very beginning of the European trading session, when the price broke the level of 1.1933. It turned out to be false, the price was able to go in the right direction by only 10 points. The next signal was formed when the price settled above 1.1933. Subsequently, the price managed to rise to 1.1989 and rebound from this level in perfect accuracy. Therefore, it was necessary to close longs and open shorts here. Then the price returned to the level of 1.1933 and overcame it, and then the level of 1.1898. Thus, a short position should have been closed when a buy signal was formed near the level of 1.1898. We also had to work out this signal with a long position. And a signal to sell near the level of 1.1933 - too. As a result, five trades were opened, of which only one was unprofitable. In total, it was possible to make a profit of about 75 points.

How to trade on Thursday:

The pair continues to be in a downward trend on the 30-minute timeframe, but now beginners have a downward channel. As we said, we are waiting for a correction in the last two trading days of the week. However, if it fails to settle above the level of 1.1933 or the price falls below the channel, this will signal the continuation of the fall of the British currency without any correction. On the 5-minute TF on Thursday it is recommended to trade at the levels of 1.1898, 1.1933, 1.1989, 1.2040, 1.2106. When the price passes after opening a deal in the right direction for 20 points, Stop Loss should be set to breakeven. There will be no interesting events on Thursday Morning. The US will release two reports, only one of which deserves attention - the ADP report on the change in the number of employees in the private sector. However, it is far from a fact that the market will try to work out these reports. The most important events of the week are scheduled for Friday.

Basic rules of the trading system:

1) The signal strength is calculated by the time it took to form the signal (bounce or overcome the level). The less time it took, the stronger the signal.

2) If two or more deals were opened near a certain level based on false signals (which did not trigger Take Profit or the nearest target level), then all subsequent signals from this level should be ignored.

3) In a flat, any pair can form a lot of false signals or not form them at all. But in any case, at the first signs of a flat, it is better to stop trading.

4) Trade deals are opened in the time period between the beginning of the European session and until the middle of the US one, when all deals must be closed manually.

5) On the 30-minute TF, using signals from the MACD indicator, you can trade only if there is good volatility and a trend, which is confirmed by a trend line or a trend channel.

6) If two levels are located too close to each other (from 5 to 15 points), then they should be considered as an area of support or resistance.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and 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 on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.