25.02.202607:18 Forex Analysis & Reviews: How to Trade the GBP/USD Currency Pair on February 25? Simple Tips and Trade Analysis for Beginners

Analysis of Tuesday's Trades:

1H Chart of the GBP/USD Pair

The GBP/USD pair also failed to show any interesting movements on Tuesday. The macroeconomic and fundamental backdrop was non-existent that day, as new 10% tariffs from Trump began to take effect in the U.S., which will soon increase to 15%. Many countries around the world have paused negotiations with the U.S. on trade agreements or the ratification of already agreed deals until circumstances are clarified. Recall that Trump's new tariffs are uniform for all countries, while previous agreements with various nations entailed completely different tariff rates and other terms of cooperation, which largely depended on established tariff rates. As a result, the U.S. Supreme Court and then Trump have significantly complicated the negotiation process and substantially decreased the likelihood of signing trade agreements on favorable terms for the U.S. However, the market appears to be unfazed by this. The downward trend on the hourly timeframe persists, and this week's movements have been extremely weak.

5M Chart of the GBP/USD Pair

On the 5-minute timeframe, several trading signals were formed on Tuesday, which novice traders could easily capitalize on. The first signal was a sell signal in the area of 1.3484-1.3489, which proved false. The price then generated two duplicate buy signals in the same area, after which it hit the nearest target—the 1.3529 level. The bounce from the area of 1.3529-1.3543 allowed traders to open shorts, and by the end of the day, the area of 1.3484-1.3489 was tested again. Thus, two out of three trades were profitable.

How to Trade on Wednesday:

On the hourly timeframe, the GBP/USD pair continues to form a downward trend. There are no global reasons for medium-term dollar growth, so we expect the global upward trend of 2025 to continue in 2026, which could push the pair to the 1.4000 mark at a minimum. In recent weeks, the situation has often played against the British currency, but the market has not paid attention to any negativity from the U.S.

On Wednesday, novice traders may consider holding long positions following a buy signal from the 1.3484-1.3489 area, targeting 1.3529-1.3543. A price bounce from the area of 1.3529-1.3543 will allow for opening shorts with a target of 1.3484-1.3489.

On the 5-minute timeframe, levels to consider are 1.3319-1.3331, 1.3365, 1.3403-1.3407, 1.3437-1.3446, 1.3484-1.3489, 1.3529-1.3543, 1.3643-1.3652, 1.3695, 1.3741-1.3751, 1.3814-1.3832, 1.3891-1.3912, and 1.3975. There are no significant events or reports scheduled in the UK or the U.S. for Wednesday. Therefore, market movements today may again be extremely weak.

Main Rules of the Trading System:

1. The strength of the signal is determined by the time it takes to form (rebound or breaking through the level). The shorter the time, the stronger the signal.
2. If two or more trades were opened around a particular level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat market, any pair can generate numerous false signals or no signals at all. In any case, it is best to stop trading at the first signs of a flat.
4. Trades are opened during the time period between the start of the European session and until the middle of the American session, after which all trades should be manually closed.
5. On the hourly timeframe, signals from the MACD indicator should ideally be traded only when there is good volatility and a trend confirmed by a trend line or channel.
6. If two levels are too close to each other (ranging from 5 to 20 pips), they should be considered as a support or resistance area.
7. After moving 20 pips in the correct direction, it is advisable to set the Stop Loss to break-even.

What's on the Charts:

• Support and resistance levels are targets for opening buy or sell trades. Take Profit levels can be placed around them.
• Red lines indicate channels or trend lines that reflect the current trend and indicate the preferred direction for trading now.
• The MACD indicator (14,22,3) – the histogram and signal line – serves as a supplementary indicator that can also be used as a source of signals.
• Important speeches and reports (always found in the news calendar) can significantly influence the movement of the currency pair. Therefore, during their release, trading should be conducted with maximum caution, or it is advised to exit the market to avoid a sharp price reversal against the preceding movement.
• Beginners trading in the Forex market should remember that not every trade can be profitable. Developing a clear strategy and practicing sound money management are the keys to long-term trading success.