Analysis of Wednesday's Trades:

1H Chart of the GBP/USD Pair

The GBP/USD pair experienced a sharp decline on Wednesday, recovered, and then resumed a new downward move. The ascending trendline has been broken, so a correction may occur in the near future. Yesterday, the UK inflation report was published, providing a definitive conclusion on the Bank of England's monetary policy decision scheduled for today. There is now no doubt that the British central bank will cut the key interest rate, which is a bearish factor for the British currency. While this decision may already be partially priced in, a decline could still be observed today, as the BoE may adopt a more dovish stance in 2026 than the market expects. Additionally, U.S. inflation remains one of the most significant indicators. Reports on the U.S. labor market for November were quite contradictory, but we would label them as largely negative. Therefore, a decline in U.S. inflation could lead to a drop in the dollar as the market anticipates further Federal Reserve easing. Traders can expect another busy day today, and volatility is likely to remain high.

5M Chart of the GBP/USD Pair

On the 5-minute timeframe, two solid sell signals were formed throughout Wednesday. As soon as the pair started moving less sluggishly, strong signals began to appear. Early in the Asian trading session, the price bounced from the 1.3413-1.3421 area, and by the time of the European open, it had barely moved away from the pivot point. Thus, novice traders could open short positions. Within just an hour, the 1.3319-1.3331 range was tested, and the pair failed to break through. A buy signal was generated, yielding profits.

How to Trade on Thursday:

On the hourly timeframe, the GBP/USD pair may enter a downward correction since the trendline has been broken. As mentioned, there are no global foundations for medium-term dollar growth, so we expect movement only to the upside. Overall, we anticipate a resumption of the global upward trend for 2025, which could lead the pair to the 1.4000 level within the next couple of months.

On Thursday, novice traders may consider new long positions if the price bounces from the 1.3319-1.3331 area, targeting the 1.3413-1.3421 range. If this area is breached, short positions will become relevant, with targets at 1.3259-1.3267.

On the 5-minute timeframe, levels to consider include 1.2913, 1.2980-1.2993, 1.3043, 1.3096-1.3107, 1.3203-1.3212, 1.3259-1.3267, 1.3319-1.3331, 1.3413-1.3421, 1.3466-1.3475, 1.3529-1.3543, 1.3574-1.3590. Wednesday sees the announcement of the BoE meeting results in the UK, and in the U.S., the inflation report will be published. Both events are crucial and could provoke a strong market reaction.

Key Rules of the Trading System:

1. The strength of a signal is assessed by the time it takes to form the signal (bounce or breakout). The less time it takes, the stronger the signal.
2. If two or more trades were opened near any level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat, any pair can create numerous false signals or none at all. In any case, it's better to stop trading at the first signs of a flat.
4. Trades are opened during the period between the start of the European session and the middle of the American session, after which all trades must be closed manually.
5. On the hourly timeframe, when trading based on signals from the MACD indicator, it is preferable to trade only when good volatility is present, and a trend is confirmed by a trend line or channel.
6. If two levels are positioned too closely to each other (5 to 20 points), they should be viewed as a support or resistance area.
7. After moving 20 pips in the right direction, set the Stop Loss to breakeven.

Chart Explanation:

• Support and Resistance Levels: Levels that serve as targets for opening buys or sells. Take Profit levels can be placed near them.
• Red Lines: Channels or trend lines that reflect the current trend and indicate the preferred direction for trading.
• MACD Indicator (14, 22, 3): A histogram and signal line, a supplementary indicator that can also be used as a source of signals.

Important Note: Significant speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their release, it is advisable to trade cautiously or exit the market to avoid sharp reversals against the preceding movement.

Remember: For beginners trading in the Forex market, it is important to understand that not every trade can be profitable. Developing a clear strategy and practicing money management are keys to long-term trading success.