For traders fond of the GBP/USD currency pair, this trading strategy could add to your earnings. GBP/USD is one of the most traded pairs in the forex market. But how can you trade GBP/USD simply yet effectively? Here's a strategy worth trying, especially for those keen on the Sterling currency pair.
The RSI indicator is available on most forex trading platforms, including MetaTrader4 (MT4), and is easy to install. Open your platform, display the GBP/USD currency pair on the H1 timeframe, and then attach the RSI indicator with a period of 10.
The RSI indicator alone is already a reliable technical trading tool. However, combining it with other indicators like the Moving Average (MA) periods 4 and 13 can enhance signal accuracy. The crossover between MA-4 and MA-13 provides a Sell signal if MA-4 crosses below MA-13 and a Buy signal if MA-4 crosses above MA-13.
Additionally, pay attention to the schedule of significant fundamental news releases. During the release of important fundamental news, price movements can become unstable, and technical indicators may be less accurate. Nonetheless, by focusing on the 25-75 levels on the RSI, there's still potential to capture good trading opportunities.
Trading the GBP/USD at night is an intriguing choice for traders seeking additional opportunities. However, it's important to always observe risk management and avoid trading during crucial fundamental moments. By adhering to rules and discipline in executing the strategy, you can increase your chances of success in trading GBP/USD at night.