Trade Review for Friday:

1H Chart of the GBP/USD Pair

The GBP/USD pair traded even worse on Friday than the EUR/USD pair. Furthermore, another flat range has formed in the British currency, clearly visible on the hourly timeframe. For seven consecutive days, the quotes have been within the range of 1.3331-1.3437. What is this, if not a flat? This week, significant macroeconomic information was published in the UK and the U.S., and there was also the Bank of England meeting, the results of which are not trivial by any means. If reports on inflation, unemployment, and business activity indices, along with the BoE meeting, failed to trigger a trend or volatility, how can we characterize the current market sentiment? Only as a complete unwillingness to trade in principle. Thus, the key feature for the pound right now is the flat on the hourly timeframe. The ascending trend line has been broken, but that no longer matters. Any flat seems to deviate from the overall trend. After the flat concludes, the pair's growth may easily resume.

5M Chart of the GBP/USD Pair

On the 5-minute timeframe, no trading signals were formed on Friday. Throughout the day, the price did not even come close to areas of interest. There were no reasons for beginners to enter the market.

How to Trade on Monday:

On the hourly timeframe, the GBP/USD pair may enter a downward correction, as the trendline has been broken. However, over the past 1.5 weeks, a flat has formed in the market. As we have already noted, there are no global factors driving medium-term dollar growth, so we anticipate movement only to the upside. Overall, we also expect the resumption of the global upward trend of 2025, which could lead the pair to the 1.4000 mark within the next couple of months.

On Monday, beginner traders may consider new long positions if the price bounces from the area of 1.3319-1.3331 or breaks through the area of 1.3437-1.3446. A bounce from the area of 1.3437-1.3446 or a consolidation below 1.3319-1.3331 would make shorts relevant.

On the 5-minute timeframe, levels to consider now include 1.2913, 1.2980-1.2993, 1.3043, 1.3096-1.3107, 1.3203-1.3212, 1.3259-1.3267, 1.3319-1.3331, 1.3437-1.3446, 1.3529-1.3543, and 1.3574-1.3590. On Monday, the UK is scheduled to publish the third-quarter GDP report, which is not expected to spark much interest. In the U.S., the event calendar is empty, so we expect low volatility and the continuation of the flat.

Key Rules of the Trading System:

1. The strength of a signal is assessed by the time it takes to form the signal (bounce or breakout). The less time it takes, the stronger the signal.
2. If two or more trades were opened near any level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat, any pair can create numerous false signals or none at all. In any case, it's better to stop trading at the first signs of a flat.
4. Trades are opened during the period between the start of the European session and the middle of the American session, after which all trades must be closed manually.
5. On the hourly timeframe, when trading based on signals from the MACD indicator, it is preferable to trade only when good volatility is present, and a trend is confirmed by a trend line or channel.
6. If two levels are positioned too closely to each other (5 to 20 points), they should be viewed as a support or resistance area.
7. After moving 20 pips in the right direction, set the Stop Loss to breakeven.

Chart Explanation:

• Support and Resistance Levels: Levels that serve as targets for opening buys or sells. Take Profit levels can be placed near them.
• Red Lines: Channels or trend lines that reflect the current trend and indicate the preferred direction for trading.
• MACD Indicator (14, 22, 3): A histogram and signal line, a supplementary indicator that can also be used as a source of signals.

Important Note: Significant speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their release, it is advisable to trade cautiously or exit the market to avoid sharp reversals against the preceding movement.

Remember: For beginners trading in the Forex market, it is important to understand that not every trade can be profitable. Developing a clear strategy and practicing money management are keys to long-term trading success.