empty
06.05.2025 05:40 AM
How to Trade the GBP/USD Pair on May 6? Simple Tips and Trade Analysis for Beginners

Analysis of Monday's Trades

1H Chart of GBP/USD

This image is no longer relevant

On Monday, the GBP/USD pair continued to trade strictly sideways. Although we don't see a clearly defined flat range for the pound, the bias is still more sideways than upward. Early in the day, the pair posted a slight rise on the news of Donald Trump's new import tariffs, followed by a drop after the release of the U.S. ISM Services PMI. In both cases, the volatility was low. Overall, the market remains waiting for new tariffs, a de-escalation in the global trade war, government reshuffles in the Trump administration, and other high-impact news from the White House.

Last week, the market largely ignored an entire series of macroeconomic reports. The same could happen this week with the Bank of England and Federal Reserve meetings. Even though the BoE is expected to cut the key rate on Thursday, the British pound doesn't appear concerned.

5M Chart of GBP/USD

This image is no longer relevant

On Monday, several trading signals were formed in the 5-minute timeframe, but once again, their accuracy left much to be desired. All signals clustered around the 1.3289–1.3297 area, and the price crossed back and forth without meaningful pauses. Unfortunately, the market is currently not only range-bound but also chaotic. Logical, technically driven movements remain very limited.

Trading Strategy for Tuesday:

On the hourly timeframe, GBP/USD could have begun a downtrend long ago, but the market continues to focus solely on Trump. As a result, the pound continues to climb — or at least hold its elevated levels. Future movements in the pair still depend almost entirely on the U.S. president and his decisions. Perhaps this focus will shift eventually, but there's no sign of that happening for now.

On Tuesday, GBP/USD may begin a new leg higher. Last week's U.S. economic data was broadly disappointing, and there is little reason to expect an improvement in the near term. For the dollar, only a technical rebound is possible at this stage.

On the 5-minute timeframe, you can now trade at the levels of 1.2848-1.2860, 1.2913, 1.2980-1.2993, 1.3043, 1.3102-1.3107, 1.3145-1.3167, 1.3203, 1.3259, 1.3329, 1.3365, 1.3421-1.3440, 1.3488, 1.3537, 1.3580-1.3598. On Tuesday, the UK will release the second estimate of the Services PMI, while no major data is expected from the U.S. We do not anticipate high volatility or any trend-driven moves today.

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

Trading Recommendations and Analysis for GBP/USD on July 3: Manipulation for the Sake of a New Rally?

On Wednesday, the GBP/USD currency pair crashed for no apparent reason. There was no major news in either the UK or the US that could have triggered a nearly 200-point

Paolo Greco 03:45 2025-07-03 UTC+2

Trading Recommendations and Analysis for EUR/USD on July 3: The Euro Holds Up, the Pound Plunges

On Wednesday, the EUR/USD currency pair declined slightly but generally showed no inclination to follow the British pound, which had crashed by nearly 200 points. The euro remained above

Paolo Greco 03:45 2025-07-03 UTC+2

GBP/USD: Strategy for the U.S. Session on July 2nd (Analysis of Morning Trades)

In my morning forecast, I focused on the 1.3713 level and planned to make trading decisions from there. Let's look at the 5-minute chart and examine what happened. Although

Miroslaw Bawulski 18:28 2025-07-02 UTC+2

EUR/USD: Strategy for the U.S. Session on July 2nd (Analysis of Morning Trades)

In my morning forecast, I highlighted the 1.1763 level and planned to make trading decisions based on it. Let's look at the 5-minute chart and see what happened. The pair

Miroslaw Bawulski 18:25 2025-07-02 UTC+2

How to Trade the GBP/USD Pair on July 2? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of GBP/USD On Tuesday, the GBP/USD pair also showed signs of continuing its upward movement. Only during the U.S. trading session did the dollar

Paolo Greco 07:15 2025-07-02 UTC+2

How to Trade the EUR/USD Pair on July 2? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades 1H Chart of EUR/USD On Tuesday, the EUR/USD currency pair once again traded with an upward bias and ended the day with gains. The new ascending

Paolo Greco 07:04 2025-07-02 UTC+2

Trading Recommendations and Analysis for GBP/USD on July 2: The Pound Is Preparing to Fall—And Trump to Step Down?

On Tuesday, the GBP/USD currency pair began a modest downward movement in the second half of the day but remained above the critical Kijun-sen line. Thus, for now, there

Paolo Greco 03:51 2025-07-02 UTC+2

Trading Recommendations and Analysis for EUR/USD on July 2: The Euro's "Finest Hour" Continues

The EUR/USD currency pair continued its upward movement on Tuesday, a rally that had resumed the previous Monday evening. Thus, completely ignoring the macroeconomic background, the market continues to sell

Paolo Greco 03:51 2025-07-02 UTC+2

GBP/USD: Trading Plan for the U.S. Session on July 1st (Review of Morning Trades)

In my morning forecast, I focused on the 1.3766 level and planned to make trading decisions from that point. Let's look at the 5-minute chart and see what happened

Miroslaw Bawulski 18:00 2025-07-01 UTC+2

EUR/USD: Trading Plan for the U.S. Session on July 1st (Review of the Morning Trades)

In my morning forecast, I highlighted the 1.1806 level as a reference point for making trading decisions. Let's take a look at the 5-minute chart and examine what happened there

Miroslaw Bawulski 17:56 2025-07-01 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.