See also
On Tuesday, the GBP/USD pair experienced a downward correction, although the British pound has been closely following the euro in recent days. While the movements of the euro can at least be explained in hindsight, the fluctuations of the pound appear entirely illogical. The German inflation data that presumably triggered the euro's rise on Monday and the European inflation data that seemingly caused the euro's decline on Tuesday had no direct connection to the British pound. Nevertheless, the movements of both currency pairs were nearly identical. Additionally, the euro tends to respect key levels and forms strong trading signals around them. In contrast, the British pound simply mimics the euro's movements, trying to superimpose them onto its own levels, which results in the creation of false signals.
On the 5-minute timeframe, as mentioned earlier, numerous signals were generated on Tuesday, most of which turned out to be false signals. The initial signal that formed overnight was promising; however, by the time the European trading session began, the price had moved too far from the signal's formation point, making it too late to enter that trade. Subsequently, five signals emerged around the 1.2547 level, but only the final sell signal around the 1.2502–1.2508 area had a realistic chance of being successful.
On the hourly timeframe, the GBP/USD pair has exited its holiday flat phase and resumed its primary trend. From a medium-term perspective, we fully anticipate a decline in the pound, as we believe this is the most logical outcome. Therefore, we expect further decreases, although trading decisions should always be based on technical signals. Over the past few days, the pound has closely followed the movements of the euro.
On Wednesday, the GBP/USD pair may continue the decline that began yesterday, especially since the important support level of 1.2502 has been breached. Additionally, the macroeconomic backdrop today is not expected to be strong.
On the 5-minute timeframe, trading levels can be identified as follows: 1.2387, 1.2445, 1.2502–1.2508, 1.2547, 1.2633, 1.2680–1.2685, 1.2723, 1.2791–1.2798, 1.2848–1.2860, 1.2913, and 1.2980–1.2993. There are no significant events scheduled in the UK for Wednesday. In the US, reports on jobless claims and the ADP employment report will be released. This will be followed in the evening by the release of the formal FOMC minutes.
Support and Resistance Levels: These are target levels for opening or closing positions and can also serve as points for placing Take Profit orders.
Red Lines: Channels or trendlines indicating the current trend and the preferred direction for trading.
MACD Indicator (14,22,3): A histogram and signal line used as a supplementary source of trading signals.
Important Events and Reports: Found in the economic calendar, these can heavily influence price movements. Exercise caution or exit the market during their release to avoid sharp reversals.
Forex trading beginners should remember that not every trade will be profitable. Developing a clear strategy and practicing proper money management are essential for long-term trading success.
You have already liked this post today
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Analysis of Monday's Trades 1H Chart of GBP/USD On Monday, the GBP/USD pair continued its downward movement. Recently, the euro and the pound have shown low correlation, as the euro
Analysis of Monday's Trades 1H Chart of EUR/USD On Monday, the EUR/USD currency pair formally continued its downward movement but in practice traded sideways with low volatility for the second
The GBP/USD currency pair continued its downward movement throughout Monday. Despite the absence of macroeconomic news in both the UK and the US, the market still found new reasons
The EUR/USD currency pair moved sideways throughout Monday. In our previous article, we anticipated that there wouldn't be a strong move on the first trading day of the week
Analysis of Friday's Trades 1H Chart of GBP/USD The GBP/USD pair traded with a relatively substantial decline on Friday. Why did the British pound fall again while the euro remained
Analysis of Friday's Trades 1H Chart of EUR/USD On Friday, the EUR/USD currency pair continued its mild downward movement, in line with the current trend. We've been saying the same
The GBP/USD currency pair continued its downward movement throughout Friday. We cannot say there were strong reasons for this, but in the morning, the UK released reports on GDP (monthly
Thursday Trade Review: GBP/USD, 1H Chart On Thursday, the GBP/USD pair continued its downward movement, mirroring the EUR/USD pair. The behavior of these two major currency pairs was nearly identical
InstaTrade in figures
Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.
If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.
Why does your IP address show your location as the USA?
Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaTrade anyway.
We are sorry for any inconvenience caused by this message.