Monday's Trade Breakdown:

1H Chart of the GBP/USD Pair

The GBP/USD pair traded sideways on Monday with minimal volatility. There were no important events or reports scheduled for that day, and the flat movement is clearly visible. The price has been trading between 1.3107 and 1.3203 for over a week, leaving only the option to open positions on rebounds from the boundaries of the sideways channel. Unfortunately, market movements are currently so weak that the price doesn't always even reach the boundaries of the channel. Therefore, the market is in a complete standstill right now. The market is clearly waiting for important macroeconomic information from the U.S. and preparing for a new trend. Market makers are currently engaged in accumulating new positions, which are likely to be long. We remind novice traders that a flat is merely the calm before the storm. It is quite possible that when the U.S. starts releasing all the missed labor market and unemployment reports, the market will awaken. And it remains very difficult to expect growth from the dollar in the medium term.

5M Chart of the GBP/USD Pair

On the 5-minute timeframe, no trading signals were formed on Monday. The price did not work through any levels throughout the day. Thus, there were no grounds for novice traders to open positions.

How to Trade on Tuesday:

On the hourly timeframe, the GBP/USD pair has broken the trend line, so in the coming weeks, we expect the British currency to grow in response to any local news and reports. As mentioned earlier, there are no global grounds for prolonged dollar growth, so in the medium term we expect movements only to the upside. If the correction/flat on the daily timeframe is completed, the pair may resume the global upward trend of 2025. However, it is also necessary to wait for the flat to be completed on the hourly timeframe.

On Tuesday, novice traders can anticipate the formation of new trading signals in the areas of 1.3096-1.3107 and 1.3203-1.3211, as these are the boundaries of the sideways channel.

On the 5-minute timeframe, trading can currently be conducted at the following levels: 1.2913, 1.2980-1.2993, 1.3043, 1.3096-1.3107, 1.3203-1.3211, 1.3259, 1.3329-1.3331, 1.3413-1.3421, 1.3466-1.3475, 1.3529-1.3543, 1.3574-1.3590. On Tuesday, there are no important events or reports scheduled in the UK or the U.S., so volatility may again be quite low, with the price likely remaining within the sideways channel of 1.3107-1.3203.

Key Principles of My Trading System:

1. The strength of the signal is considered based on the time taken to form the signal (bounce or breach of a level). The less time taken, the stronger the signal.
2. If two or more trades have been opened around a certain level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat market, any pair can create numerous false signals or may not form them at all. In any case, it's best to stop trading at the first signs of a flat.
4. Trading deals are opened during the period between the start of the European session and the middle of the American session, after which all deals should be closed manually.
5. On the hourly timeframe, it is preferable to trade based on signals from the MACD indicator only when there is good volatility and a trend that is confirmed by a trend line or trend channel.
6. If two levels are too close to each other (between 5 and 20 pips), they should be treated as an area of support or resistance.
7. After a 20-pip move in the right direction, a Stop Loss should be set to breakeven.

What the Charts Show:

• Support and resistance price levels are targets for opening buy or sell positions. Take Profit levels can be placed around them.
• Red lines indicate trend channels or trend lines, reflecting the current trend and indicating the preferred trading direction.
• The MACD indicator (14,22,3) — histogram and signal line — is a supplementary indicator that can also be used as a source of signals.

Important announcements and reports (always available in the news calendar) can significantly impact the movement of the currency pair. Therefore, during their release, it is recommended to trade with maximum caution or to exit the market to avoid sharp reversals against the preceding movement.

Beginners trading on the Forex market should remember that not every trade can be profitable. Developing a clear strategy and money management is key to long-term success in trading.