empty
28.05.2025 06:41 AM
How to Trade the GBP/USD Pair on May 28? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades

1H Chart of GBP/USD

This image is no longer relevant

On Tuesday, the GBP/USD pair also traded lower for the same reasons as the EUR/USD pair. First, after a conversation with Ursula von der Leyen, Donald Trump postponed the tariff hike for the EU to July 9. Second, the U.S. durable goods orders report showed a less disappointing result than expected. To be honest, the recent rise of the U.S. dollar might not have occurred at all— the market has ignored many dollar-supportive factors lately. However, corrections are necessary occasionally; in this case, the correction coincided with the news factor.

From a technical standpoint, the British pound remains above the trendline, so the uptrend is still intact. A rebound from this line may trigger a renewed rally of the British currency. Traders have had no issues buying the pair in recent months — the pound is being eagerly bought against the dollar even when there are no strong reasons for it.

5M Chart of GBP/USD

This image is no longer relevant

On the 5-minute timeframe, several trading signals formed on Tuesday, but their quality was lacking. Throughout the day, the price changed direction multiple times, especially near the 1.3537 level. All signals were generated around this level, so only the first two signals were potentially tradeable. The first did not result in a loss, as the price moved 20 pips in the correct direction. The second closed with a slight loss.

Trading Strategy for Wednesday:

On the hourly timeframe, GBP/USD only reacts to Donald Trump's actions and remains highly skeptical of his policies. While there are some signs of easing trade tensions, the market isn't showing any strong optimism. The dollar has strengthened slightly over the past few days, but this is merely a minor correction. A full-fledged dollar trend cannot be confirmed until the price breaks below the trendline.

On Wednesday, the pair may complete its current decline. The price is now very close to the trendline on the hourly chart, and there are no strong reasons to expect further dollar strengthening.

On the 5-minute TF, you can now trade at the levels of 1.2913, 1.2980-1.2993, 1.3043, 1.3102-1.3107, 1.3203-1.3211, 1.3259, 1.3329-1.3331, 1.3421-1.3443, 1.3537, 1.3580-1.3592, 1.3652-1.3660, 1.3695. No major economic events or reports are scheduled in the UK for Wednesday. In the U.S., the FOMC meeting minutes will be released — a fairly formal document. We do not expect any market reaction to this release.

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

GBP/USD: Trading Plan for the U.S. Session on June 6th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.3544 level and planned to make market entry decisions based on it. Let's look at the 5-minute chart and see what happened

Miroslaw Bawulski 15:38 2025-06-06 UTC+2

EUR/USD: Trading Plan for the U.S. Session on June 6th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.1407 level and planned to make market entry decisions based on it. Let's look at the 5-minute chart and see what happened. There

Miroslaw Bawulski 15:36 2025-06-06 UTC+2

How to Trade the GBP/USD Currency Pair on June 6th? Simple Tips and Trade Analysis for Beginners

Thursday Trade Analysis: GBP/USD 1H Chart. The GBP/USD pair continued its upward movement on Thursday, despite having even fewer reasons for it than the EUR/USD pair. There was no news

Paolo Greco 09:57 2025-06-06 UTC+2

How to Trade the EUR/USD Currency Pair on June 6th? Simple Tips and Trade Analysis for Beginners

The EUR/USD currency pair continued its upward movement on Thursday, in line with the current trend. There were no reasons for a new "rally" of the European currency. The only

Paolo Greco 09:51 2025-06-06 UTC+2

Trading Recommendations and Trade Analysis for GBP/USD on June 6, 2025

The GBP/USD currency pair continued its upward movement on Thursday, even though once again there were no apparent reasons for it. The British pound keeps rising practically on any occasion

Paolo Greco 04:43 2025-06-06 UTC+2

Trading Recommendations and Trade Analysis for EUR/USD on June 6, 2025

The EUR/USD currency pair continued trading with gains on Thursday. Not even the latest monetary policy easing by the ECB could save the dollar. Yesterday, the European regulator decided

Paolo Greco 04:26 2025-06-06 UTC+2

GBP/USD: Trading Plan for the U.S. Session on June 5th (Review of Morning Trades)

In my morning forecast, I focused on the 1.3562 level and planned to make market entry decisions around it. Let's look at the 5-minute chart and see what happened. Growth

Miroslaw Bawulski 19:46 2025-06-05 UTC+2

EUR/USD: Trading Plan for the U.S. Session on June 5th (Review of Morning Trades)

In my morning forecast, I focused on the 1.1407 level and planned to make market entry decisions around it. Let's look at the 5-minute chart and analyze what happened

Miroslaw Bawulski 19:39 2025-06-05 UTC+2

How to Trade the GBP/USD Pair on June 5? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of GBP/USD The GBP/USD pair continued its upward movement on Wednesday, following the new trend. Recall that the price had settled below the previous

Paolo Greco 06:39 2025-06-05 UTC+2

How to Trade the EUR/USD Pair on June 5? Simple Tips and Trade Analysis for Beginners

Analysis of Wednesday's Trades 1H Chart of EUR/USD On Wednesday, the EUR/USD currency pair traded with low volatility and an upward bias. We anticipated that the macroeconomic background would

Paolo Greco 06:39 2025-06-05 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.