empty
07.02.2025 07:45 AM
How to Trade the GBP/USD Pair on February 7? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades

1H Chart of GBP/USD

This image is no longer relevant

The GBP/USD pair experienced a sharp decline on Thursday, followed by a strong recovery. Despite a trendline breakout on Monday, the upward trend remains intact. Yesterday, the price rebounded precisely from this trendline, indicating that further appreciation of the British pound is expected. The Bank of England cut its key interest rate by 0.25% yesterday, a move that the market had not anticipated, making the decline predictable. Additionally, BoE Governor Andrew Bailey did not provide any supportive comments for the pound during the press conference. However, the direction of the pair today will be influenced by U.S. economic data.

From a technical perspective, the hourly chart still appears bullish. However, strong U.S. labor market and unemployment data could trigger another trendline breakout—this time, a significant one. In the short term, we maintain a bullish outlook for the pound, as the correction on the daily timeframe still appears weak.

5M Chart of GBP/USD

This image is no longer relevant

On Thursday, two near-perfect trading signals appeared within a 5-minute timeframe. Throughout the night, the trading pair bounced off the 1.2502–1.2508 zone before declining to the 1.2372–1.2387 area, where it rebounded once more. This was followed by an upward movement toward the intermediate level at 1.2445, where the price action essentially halted. As a result, novice traders had the opportunity to enter two trades, both of which were profitable, yielding a total gain of at least 120 pips.

Trading Strategy for Friday:

On the hourly timeframe, GBP/USD is currently forming a short-term uptrend, but this is primarily a corrective move. In the medium term, we firmly maintain a bearish outlook, setting a target of 1.1800, as this appears to be the most logical scenario. Therefore, traders should wait for the daily timeframe correction to finish. The price action this week may be choppy and hard to interpret.

On Friday, GBP/USD could continue its upward movement; however, this will depend on weak U.S. economic data that could support such a scenario.

For the 5-minute timeframe, the key trading levels to monitor are 1.2010, 1.2052, 1.2089–1.2107, 1.2164–1.2170, 1.2241–1.2270, 1.2301, 1.2372–1.2387, 1.2445, 1.2502–1.2508, 1.2547, 1.2633, 1.2680–1.2685, 1.2723, and 1.2791–1.2798. There are no significant economic events scheduled in the UK for Friday, while the U.S. will release at least three major reports. The fate of the dollar on Friday and into the following week will largely depend on these reports.

Core Trading System Rules:

  1. Signal Strength: The shorter the time it takes for a signal to form (a rebound or breakout), the stronger the signal.
  2. False Signals: If two or more trades near a level result in false signals, subsequent signals from that level should be ignored.
  3. Flat Markets: In flat conditions, pairs may generate many false signals or none at all. It's better to stop trading at the first signs of a flat market.
  4. Trading Hours: Open trades between the start of the European session and the middle of the US session, then manually close all trades.
  5. MACD Signals: On the hourly timeframe, trade MACD signals only during periods of good volatility and a clear trend confirmed by trendlines or trend channels.
  6. Close Levels: If two levels are too close (5–20 pips apart), treat them as a support or resistance zone.
  7. Stop Loss: Set a Stop Loss to breakeven after the price moves 20 pips in the desired direction.

Key Chart Elements:

Support and Resistance Levels: These are target levels for opening or closing positions and can also serve as points for placing Take Profit orders.

Red Lines: Channels or trendlines indicating the current trend and the preferred direction for trading.

MACD Indicator (14,22,3): A histogram and signal line used as a supplementary source of trading signals.

Important Events and Reports: Found in the economic calendar, these can heavily influence price movements. Exercise caution or exit the market during their release to avoid sharp reversals.

Forex trading beginners should remember that not every trade will be profitable. Developing a clear strategy and practicing proper money management are essential for long-term trading success.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

How to Trade the GBP/USD Pair on March 18? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of GBP/USD On Monday, the GBP/USD pair also attempted to resume its upward movement and even broke through the latest local high within

Paolo Greco 06:08 2025-03-18 UTC+2

How to Trade the EUR/USD Pair on March 18? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades 1H Chart of EUR/USD On Monday, the EUR/USD currency pair resumed its upward movement but remained within a sideways channel between the levels of 1.0804

Paolo Greco 06:08 2025-03-18 UTC+2

Trading Recommendations and Analysis for GBP/USD on March 18: The British Pound is Flying North Again

On Monday, the GBP/USD currency pair again showed an upward movement despite having no reason. The market continues to buy the British pound purely out of inertia, much like Bitcoin

Paolo Greco 02:35 2025-03-18 UTC+2

Trading Recommendations and Analysis for EUR/USD on March 18: A New Increase, But Within Reasonable Limits

The EUR/USD currency pair continued to trade higher on Monday but within a confined range that can be considered a sideways channel. Traders again ignored all news supporting the U.S

Paolo Greco 02:35 2025-03-18 UTC+2

GBP/USD: Trading Plan for the U.S. Session on March 17th (Review of Morning Trades)

In my morning forecast, I highlighted 1.2949 as a key level for making market entry decisions. Let's analyze the 5-minute chart to see what happened. The price moved higher

Miroslaw Bawulski 17:20 2025-03-17 UTC+2

EUR/USD: Trading Plan for the U.S. Session on March 17th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.0866 level as a key point for making entry decisions. Let's look at the 5-minute chart to analyze what happened. A decline

Miroslaw Bawulski 17:17 2025-03-17 UTC+2

Trading Recommendations and Analysis for GBP/USD on March 17: The Pound Shows No Interest in the Economy

The GBP/USD currency pair experienced a slight decline on Friday, with minimal volatility. In fact, the British currency has been falling for three consecutive days, losing a total

Paolo Greco 02:54 2025-03-17 UTC+2

Trading Recommendations and Analysis for EUR/USD on March 17: The Euro Remains Steady at Highs

The EUR/USD currency pair traded upward again on Friday, although no clear reasons emerged for this movement. The increase occurred during the European trading session, followed by a period

Paolo Greco 02:54 2025-03-17 UTC+2

How to Trade the GBP/USD Pair on March 17? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of GBP/USD The GBP/USD pair continued to trade with low volatility on Friday, remaining within the sideways channel of 1.2913 to 1.2980

Paolo Greco 22:26 2025-03-16 UTC+2

How to Trade the EUR/USD Pair on March 17? Simple Tips and Trade Analysis for Beginners

Analysis of Friday's Trades 1H Chart of EUR/USD The EUR/USD currency pair experienced a brief surge on Friday; however, this rise was short-lived and not particularly strong. The increase

Paolo Greco 22:26 2025-03-16 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.