The GBP/USD pair showed only one thing on Monday – an absolute flat. The volatility of the first trading day of the week was 44 points, which is absolutely miniscule. This value is considered low even for a less volatile euro/dollar pair. And for the pound, it's nothing at all. Thus, it was very difficult to count on making a profit today. It is noteworthy that the pound did not follow the euro's example and did not trade with a decrease. Thus, it becomes unclear as to what basis the markets were trading at today? If due to geopolitics, then the pound should have fallen along with the euro. If on the basis of Friday's US statistics, then again, the pound was also supposed to fall. In general, on the 30-minute TF, it is perfectly clear that the minimum downward bias has been present in the last few days, but it is not possible to call it a "trend". The British currency is slowly but surely moving towards its local lows around 1.3059, but at the same time traders are clearly not sure that it is advisable to sell the pound again at such low price values. Perhaps they are waiting for new data from Ukraine. And if they do, they will most likely wear a negative color, which may allow the pound to resume falling against the dollar.
The movement on the 5-minute timeframe looks a little worse than nothing. The absolute flat is clearly visible. All three trading signals were formed today near the area of 1.3119-1.3126 and the level of 1.3119 was removed from the chart at the end of the day. The first sell signal was formed within 5.5 hours, so it cannot be called strong. Nevertheless, it was possible to try to work it out. The price managed to go down about 20 points, but most likely, novice traders did not have time to set a Stop Loss to breakeven. Then the pair returned to the level of 1.3119 and returned to it once again, bouncing off it three times in total for the day. Thus, there were simply no signals to close the short position. Therefore, the transaction should have been closed manually in the late afternoon. However, in this case it was not possible to make a profit, but there was no loss either. The British currency is also inclined to a new fall, but it is clear that traders need powerful new factors in order to start new short positions on the pair.
How to trade on Tuesday:
The pair's downward trend was canceled on the 30-minute TF, but a new upward trend was not formed. The British pound is slowly slipping to the level of 1.3059, and a flat is possible on the higher TF, which will look like a not too weak "swing" on the lower TF: two days down, three up, three down. In general, we can say that there is no lateral movement and trend movement now. On the 5-minute TF tomorrow, it is recommended to trade by levels 1.3000, 1.3042, 1.3059, 1.3126, 1.3156, 1.3210. When the price passes after opening a deal in the right direction, 20 points should be set to Stop Loss at breakeven. Tomorrow, the UK and America are set to publish indices of business activity in the service sectors. We believe that the ISM index in the US has a theoretical chance of provoking a reaction, but in fact it is unlikely to interest traders so much that they rush to buy or sell the pair after its release. Still, business activity is now far from the most anticipated report.
