The GBP/USD pair showed nothing interesting on Monday. In the first half of the day, a relatively good upward movement was observed, but in general the volatility was just over 60 points, which is about the same for the pound as for the euro - 40 points. That is, very little. At this time, a new downward trend has formed, which is supported by the downtrend line, from which the pair has already bounced four times. Thus, this trend line can be called strong. In particular, today a sell signal was generated near it, which could and should have been worked out. The rebound was accurate, and the price went down more than 40 points after it, which would be enough to trigger the Take Profit order. Therefore, we can already conclude that the day was not the worst. As for the macroeconomic statistics, only a report on business activity in the construction sector was published in the UK on Monday, which slightly exceeded forecasts. However, at the time of its release, the pair was already in an upward movement, so the pound's growth was hardly caused by this report.
On a 5-minute timeframe, the movement of the pound/dollar pair on Monday does not look entirely unambiguous. The first buy signal was generated when the price crossed the 1.3246 level and should have been followed by a long position. The price subsequently rose to the level of 1.3276 (the level of 1.3286 is the high on Monday and was not yet reached during the day), and then bounced off the trend line at the 30-minute TF. Thus, it was precisely this signal that should have been used to close long positions (about 18 points profit) and open short positions, especially since a sell signal was also formed on the 30-minute TF. As we said above, this trade closed at 40 points profit at TP. Thus, we managed to earn about 60 points for two trades. It was no longer necessary to open long positions on the last signal, but even if the newcomers worked out this signal, they only earned a dozen more points of profit. Thus, although the movement of the pair was not the most beautiful, it was still possible to make good money on it.
How to trade on Tuesday:
At this time, there is a downward trend on the 30-minute timeframe, so it will persist until the downtrend line is broken. If the pair settles above it, it will be a signal to buy, and the trend will change to an upward one. Accordingly, a new bounce is a new sell signal. The important levels on the 5-minute timeframe are 1.3193, 1.3208, 1.3246, 1.3286, 1.3310, 1.3333. We recommend trading on them on Tuesday. The price can bounce off them or overcome them. As before, we set Take Profit at a distance of 40-50 points. At the 5M TF, you can use all the nearest levels as targets, but then you need to take profit, taking into account the strength of the movement. When passing 20 points in the right direction, we recommend setting Stop Loss to breakeven. There will be no major report or other event on December 7 in the UK and US. Thus, the pair may move very weakly tomorrow, but if the signals are the same as today, it will again make good money.
