08.08.202416:49 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on August 8 (U.S. Session)

Analysis of Trades and Tips for Trading the British Pound

The test of the 1.2706 level occurred when the MACD indicator had just started moving up from the zero line. This confirmed a suitable entry point for buying the pound in anticipation of a minor correction in the first half of the day. Unfortunately, the pair did not experience significant growth despite all the prerequisites. Selling at the price of 1.2684 happened when the MACD was far from the zero mark, so I preferred not to enter the market. In the second half of the day, data on the number of initial jobless claims and changes in wholesale inventories are expected. It is also worth listening to FOMC member Thomas Barkin's speech, though his words are unlikely to significantly impact the GBP/USD pair. Regarding the intraday strategy, I plan to act based on the implementation of Scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound upon reaching the entry point around 1.2703 (green line on the chart) with the target of rising to the level of 1.2738 (thicker green line on the chart). At the point of 1.2738, I will exit the purchases and open sales in the opposite direction, targeting a movement of 30-35 points in the opposite direction from the level. Pound growth today can be expected only after weak U.S. economic data. Important: Before buying, ensure that the MACD indicator is above the zero mark and just beginning to rise from it.

Scenario #2: I also plan to buy the pound today in case of two consecutive tests of the price at 1.2675 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. Growth to the levels of 1.2703 and 1.2738 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound today after updating the level of 1.2675 (red line on the chart), which will lead to a quick decline of the pair. The key target for sellers will be the level of 1.2652, where I will exit the sales and also open purchases immediately in the opposite direction, targeting a movement of 20-25 points in the opposite direction from the level. Sellers will show themselves, but it is better to act as high as possible. Important: Before selling, ensure that the MACD indicator is below the zero mark and just beginning to decline from it.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the price at 1.2703 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the levels of 1.2675 and 1.2652 can be expected.

What is on the Chart:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: The assumed price where Take Profit can be set or profits can be fixed manually, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: The assumed price where Take Profit can be set or profits can be fixed manually, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it is important to consider the zones of overbought and oversold.

Important Note: Beginner traders in the forex market should 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 getting caught in sharp rate fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit, especially if you do not use money management and trade in large volumes.

And remember, to trade successfully, you need to have a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are generally a losing strategy for an intraday trader.