27.02.202606:50 Forex Analysis & Reviews: How to Trade the GBP/USD Currency Pair on February 27? Simple Tips and Trade Analysis for Beginners

Trade Analysis of Thursday:

1H Chart of the GBP/USD Pair

The GBP/USD pair plummeted on Thursday. The factors causing the decline of the British pound, or rather the rise of the American currency, were the same as those for the EUR/USD pair. A new military conflict has begun between Pakistan and Afghanistan, and the negotiations regarding the nuclear deal between the US and Iran fell apart. Thus, it was quite reasonable for the market to assume that Donald Trump would soon order a large-scale strike on Tehran and other Iranian cities and facilities. The pound sterling, which had just begun to form an upward trend, sank like a stone. As we can see, the market is effectively trading only the dollar. The fate of other currencies depends on how the dollar is traded. Recently, the American currency has been clearly fortunate. Its status as a "safe haven" continues to support it, and many negative news items and reports from across the ocean have been outright ignored by traders.

5M Chart of the GBP/USD Pair

On the 5-minute timeframe, several trading signals formed on Thursday that were worth attention. Unfortunately, the first trading signal in the area of 1.3529-1.3543 was not accurate enough, but short positions could still have been opened based on it. Subsequently, the area of 1.3484-1.3489 was broken through, and the area of 1.3437-1.3446 was perfectly executed. After the bounce from this area, traders could take profit on their short positions and even open long positions, which also yielded profits.

How to Trade on Friday:

On the hourly timeframe, the GBP/USD pair broke the downward trend and immediately broke a new upward trend as well. There are no global grounds for medium-term dollar growth, so in 2026, we expect the global upward trend from 2025 to continue, which may drive the pair to at least the 1.4000 mark. In recent weeks, the situation has often not favored the British currency, and the market has frequently ignored negative news from America.

On Friday, novice traders can open new long positions if the area of 1.3484-1.3489 is surpassed, targeting 1.3529-1.3543. A price consolidation below the area of 1.3484-1.3489 will allow for opening short positions with a target of 1.3437-1.3446.

On the 5-minute timeframe, trading can currently be done at 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. No significant events are scheduled in the UK for Friday, and only the Producer Price Index will be released in the US, which we do not consider to be an important indicator. The market's reaction to it may only occur in the event of a significant deviation from expectations.

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.