Analysis of Thursday's Trades:

1H Chart of the GBP/USD Pair

The GBP/USD pair also traded with minimal volatility on Thursday amid a complete absence of macroeconomic and fundamental information. Overall, the British pound continues its sluggish decline, with no underlying reasons to support it. This week had only one event that could have triggered the pound's decline—the UK inflation report. On all other days, there was no reason for traders to sell the pair: neither technical, given the cancellation of the downtrend, nor macroeconomic.

What will happen today remains an open question, as unlike the rest of the week, Friday includes a significant amount of macroeconomic data releases. Therefore, the market may react differently to various reports. As a result, movements in both directions may occur during the day, but volatility is expected to increase.

5M Chart of the GBP/USD Pair

On the 5-minute time frame, three trading signals were formed on Thursday, but they did not bring notable profits for novice traders due to low volatility. First, the price bounced twice from the 1.3329–1.3331 zone, but the maximum upward movement reached only about 15 pips. The same applies to the sell signal from this zone—the price barely managed to fall by 15 pips.

How to Trade on Friday:

On the hourly time frame, the GBP/USD pair has started forming a new upward trend, which could mark the beginning of a new phase of a global uptrend. However, the pair has been declining this week. As previously mentioned, there are no fundamental reasons for prolonged dollar growth, so in the medium term, we expect movement only to the upside. At the moment, market volatility has dropped to near-zero levels, and the price still shows no eagerness to rise.

On Friday, the GBP/USD pair may attempt to resume upward movement, but this will require suitable macroeconomic data. To open long positions, the price must break through the 1.3329–1.3331 area. A bounce from this zone from below would justify considering short positions with a target of 1.3259.

On the 5-minute time frame, trading can now be conducted using the following levels: 1.3102-1.3107, 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, 1.3643-1.3652, 1.3682, and 1.3763.

The Friday event calendar contains the first significant reports of the week. Business activity indices for the services and manufacturing sectors will be released, and in the United States, the inflation report will be published.

Basic Rules of the Trading System:

1. The strength of a signal is determined by how quickly it forms (i.e., a bounce or breakout of a level). The shorter the time, the stronger the signal.
2. If two or more false signals appear near a certain level, all subsequent signals from that level should be ignored.
3. In a flat market, any currency pair may generate many false signals or none at all. In any case, it's better to stop trading at the first signs of a flat trend.
4. Trade entries should occur between the start of the European session and the middle of the U.S. session. All trades should be closed manually afterward.
5. On the 1-hour chart, MACD signals should be acted on only when there is significant volatility and a trend confirmed by a trendline or trend channel.
6. If two levels are located too closely together (5–20 pips apart), consider them as a support or resistance zone.
7. Once the price moves 20 pips in the correct direction, a Stop Loss should be moved to breakeven.

What's on the Charts:

Support and resistance price levels – levels that serve as targets when opening buy or sell trades. Take Profit levels can be placed near them.

Red lines – channels or trendlines that show the current trend and indicate the preferred trading direction.

MACD (14,22,3) indicator – histogram and signal line – a supporting indicator that can also be used as a signal source.

Important speeches and reports (always listed in the economic calendar) can significantly affect the movement of currency pairs. Therefore, during their release times, trading should be highly cautious, or it's better to exit the market to avoid sharp reversals against the preceding movement.

Beginner traders on the Forex market should remember that not every trade will be profitable. Developing a clear strategy and sound money management are the keys to long-term success in trading.