Monday's Trade Analysis:

1H Chart of the GBP/USD Pair

The GBP/USD pair traded in a holiday style throughout Monday. Volatility was minimal, and the directional movement of the pair remained sideways all day. With a lack of macroeconomic and fundamental background, traders had nothing to respond to once again. Therefore, technically, an upward trend remains on the hourly timeframe, indicating that after the holidays, we can expect further growth of the British currency. It's worth recalling that global factors favor the British currency over the dollar. However, this week, it is unlikely we will see significant movements. While they are possible, predicting them is extremely difficult. Traders should rely solely on technical factors when making trading decisions.

5M Chart of the GBP/USD Pair

Over the 5-minute timeframe, no trading signals were generated on Monday. The price traded sideways all day with minimal volatility. Therefore, no level or area was engaged.

How to Trade on Tuesday:

On the hourly timeframe, the GBP/USD pair has exited the flat and is moving upward again. We fully support this scenario, as we have repeatedly mentioned. There are no global reasons for the dollar to grow in the medium term, so we expect movement only to the upside. Overall, we anticipate the resumption of the global upward trend in 2025, which could push the pair towards 1.4000 in the coming months.

On Tuesday, novice traders can consider new long positions if the price surpasses the 1.3529-1.3543 area, targeting 1.3574-1.3590. Short positions will become relevant with a new bounce from the area of 1.3529-1.3543, targeting 1.3437-1.3446.

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, 1.3203-1.3212, 1.3259-1.3267, 1.3319-1.3331, 1.3437-1.3446, 1.3529-1.3543, and 1.3574-1.3590. On Tuesday, there are no significant events scheduled in the UK or the US, and market volatility may remain low. The market is currently "thin," making it easier for market makers to move prices than during regular times. However, this does not automatically mean that they have the desire to do so.

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.