Thursday Trade Review:

1-Hour GBP/USD Chart

On Thursday, the GBP/USD pair continued moving upward after breaking through the descending trendline. As we can see, the market is now in an upward trend, and we continue to expect further growth in the British pound. Yesterday, the U.K. published reports on industrial production and GDP for August, both of which returned better-than-forecast results. However, as before, British data had little impact on traders. Market attention remains focused on the U.S. dollar, U.S. politics, Donald Trump, the Federal Reserve, and the escalating trade war. From our perspective, none of the major global fundamental factors favor the U.S. dollar. In recent months, the pair has been moving in a wide-ranging sideways channel on the daily timeframe. After such consolidation, a new trend usually emerges—either upward or downward. At this point, there is no reason to expect a downtrend, meaning a bullish breakout may soon follow.

5-Minute GBP/USD Chart

On the 5-minute timeframe, at least five buy signals were generated on Thursday within a narrow range. The price bounced five times from the 1.3413–1.3421 zone, which provided multiple entry opportunities for beginners. As of now, the pound has not yet shown decisive growth, but we believe the next target zone of 1.3466–1.3475 could be reached during today's session.

How to Trade on Friday:

On the hourly timeframe, GBP/USD has finally begun forming a potential new bullish trend, which could mark the start of a broader upward move. As previously noted, there is no basis for sustained U.S. dollar strength. Therefore, we expect medium-term movement to the upside. Donald Trump's recent surge in tariff-related actions will likely keep the market under pressure to move away from the dollar.

On Friday, the pair may attempt to continue its ascent, as the trend has turned bullish. A confirmed breakout above the 1.3413–1.3421 range would reinforce long positions targeting the 1.3466–1.3475 zone. Conversely, a close below this area would indicate the potential for a downward correction.

On the 5-minute TF, you can now trade at levels 1.3102-1.3107, 1.3203-1.3211, 1.3259, 1.3329-1.3331, 1.3413-1.3421, 1.3466-1.3475, 1.3529-1.3543, 1.3574-1.3590, 1.3643-1.3652, 1.3682, and 1.3763. There are no major news events scheduled in either the U.K. or the U.S. on Friday. As a result, traders should not expect any significant headline-driven market movements and must rely primarily on technical signals.

Basic Trading System Rules:

1. The strength of a signal is determined by how quickly it forms (rejection or breakthrough). The quicker the reaction, the stronger the signal.
2. If two or more false trades occur from the same level, any new signals from that level should be ignored.
3. In flat conditions, many false signals may appear—or none at all. At the first signs of a flat market, consider pausing trading.
4. Trade between the start of the European session and the midpoint of the U.S. session. All trades should be closed manually before the end of the session.
5. On the hourly chart, use MACD signals only when the price is moving within an active trend, supported by a trendline or channel.
6. If two levels are spaced closely together (5–20 pips), treat them as a support/resistance zone.
7. After a 20-pip move in the right direction, move the Stop Loss to breakeven.

What the Charts Show:

• Support and resistance price levels: Targets for long and short trades. Consider these points for setting Take Profit levels.
• Red lines: Trendlines and trend channels used to identify current direction and preferred trading bias.
• MACD (14,22,3): Histogram and signal line used as an auxiliary indicator for generating trade signals.
• Important speeches and key reports (always listed on the economic calendar) can strongly influence price direction. During these events, trading should be done with extreme caution or avoided altogether to reduce the risk of sharp price reversals.
• Beginner traders should remember: not every trade will be profitable. Developing a clear trading strategy and using sound money management principles are the foundations of long-term success in forex trading.