buying signal

The GBP/USD pair exhibited identical movements on Friday. It remained flat during the European trading session and experienced a decline during the American session. Therefore, there is no need to repeat the details. The strengthening of the US currency was naturally triggered by the Nonfarm Payrolls report, which significantly exceeded expectations.   However, the downward trendline (the second one) was previously breached, technically making the current trend upward. Nevertheless, we still don't see any reasons for the British currency to show growth in the medium-term perspective, so we expect a new decline in the pair. There were no important publications or events in the UK, and the pair demonstrated logically consistent movements on Friday.     On the 5-minute chart, the trading signals on Friday were not the best due to the flatness during the first half of the day. Only one signal was formed during that time, which was a buying signal near the level of 1.2520, and it should have been closed with the opening of the American trading session, as important data was expected to be released in the US, which could have caused the pair to move in any direction.   Immediately after the release of the data, a buying signal was formed in the range of 1.2507-1.2520, but it should have been ignored as the values of the US reports clearly favored the dollar. However, the next selling signal could and should have been traded. Eventually, the price dropped to the level of 1.2445, where short positions should have been closed. The profit amounted to approximately 40 pips.     Trading tips on Monday:   As seen on the 30M chart, the GBP/USD pair has ended its downward trend and started a new upward trend in the short-term perspective. We believe that the pound has not fallen enough to form a new strong uptrend, but the market may have a different opinion. There will be limited important statistics next week, so we recommend studying higher charts to understand the potential direction of the price. The key levels on the 5M chart are 1.2171-1.2179, 1.2245, 1.2307, 1.2386, 1.2445, 1.2507-1.2520, 1.2597-1.2616, 1.2659, 1.2697. When the price moves 20 pips in the right direction after opening a trade, a stop loss can be set at breakeven. On Monday, the UK has only scheduled the release of the Services PMI, which may provoke a reaction. In the US, there will also be business activity indices in the service sector, including the ISM index, which is considered important.   1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal. 2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored. 3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading. 4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually. 5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel. 6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.   How to read charts: Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them. Red lines are channels or trend lines that display the current trend and show which direction is better to trade. MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross.   This indicator is better to be used in combination with trend channels or trend lines. Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement. Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.  

The price of gold rebounded and recovered after yesterday's minor sell-off. It's trading at 1,901 at the time of writing and it seems determined to hit new highs if the Dollar Index drops deeper. You knew from yesterday's analysis that Gold announced a potential reversal. Today, the services and manufacturing figures should move the rate. The Eurozone, German, and UK data should bring action in the European session. Later, the US Flash Manufacturing PMI is expected at 48.9 points versus 49.0 points in the previous reporting period, while Flash Services PMI could be reported at 52.1 points in August and below 52.3 points in July. Furthermore, the US New Home Sales and the Canadian retail sales data could have an impact as well. Poor economic data should lift XAU/USD. In my opinion, only better-than-expected US data could force the price to drop again.   XAU/USD retested the ascending pitchfork's lower median line (LML) and now it has reached the 1,903 static resistance again. As long as it stays above the LML, Gold could extend its upwards movement. Still, only a valid breakout through 1,903 activates further growth. XAU/USD Outlook! A bullish closure above 1,903 could be seen as a buying signal as XAU/USD may approach and reach new highs.