23.07.202418:38 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on July 23rd (US Session)

Analysis of Trades and Tips for Trading the British Pound

The test of the 1.2910 price level occurred when the MACD indicator had just started moving down from the zero mark, resulting in a drop of more than 25 points. However, we did not reach the key target of 1.2886. For this reason, I could not buy from this level. Strong figures on US existing home sales in the second half of the day will likely lead to another decline in the pound, so be prepared. If the data matches economists' forecasts and the Richmond Fed Manufacturing Index does not provide any surprises, then a correction in the pair can be expected in the second half of the day. As for the intraday strategy, I plan to act based on scenarios #1 and #2.

Buy Signal

Scenario #1: I plan to buy the pound today at the entry point around 1.2918 (the green line on the chart) with a target of rising to the 1.2963 level (the thicker green line). Around 1.2963, I will exit the position and open sales in the opposite direction, expecting a movement of 30-35 points in the opposite direction from the entry level. A rise in the pound today is possible after weak US data. Important: Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.2883 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. We can expect growth to the levels of 1.2918 and 1.2963.

Sell Signal

Scenario #1: I plan to sell the pound today after breaking below the 1.2883 level (the red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the 1.2843 level, where I will exit the position and immediately open purchases in the opposite direction, expecting a movement of 20-25 points in the opposite direction from the entry level. Sellers will emerge after a good correction and strong data. Important: Before selling, ensure the MACD indicator is below the zero mark and starting to decline.

Scenario #2: I plan to sell the pound today if there are two consecutive tests of the 1.2918 price level when the MACD indicator is overbought. This will limit the pair's upward potential and lead to a market reversal downward. We can expect a decline to the levels of 1.2883 and 1.2843.

Chart Explanation:

• Thin green line: The entry price at which you can buy the trading instrument.
• Thick green line: The expected price where you can set Take Profit or independently fix profits, as further growth above this level is unlikely.
• Thin red line: The entry price at which you can sell the trading instrument.
• Thick red line: The expected price where you can set Take Profit or independently fix profits, as further decline below this level is unlikely.
• MACD Indicator: Using overbought and oversold zones is important when entering the market.

Important

Beginner Forex traders need to be very cautious when making market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you risk losing your entire deposit, especially if you do not use money management and trade large volumes.

Remember that a clear trading plan, like the one presented above, is essential for successful trading. Spontaneous trading decisions based on the current market situation are generally a losing strategy for intraday traders.