08.08.202409:00 Forex Analysis & Reviews: GBP/USD: simple trading tips for beginners for the European session on August 8

Analysis of trades and tips on on GBP/USD

The price test of 1.2700 occurred when the MACD indicator had significantly moved downward from the zero mark, which limited the pair's downward potential by the end of the day. For this reason, I did not sell the pound and turned out to be wrong. I did not find any other entry points into the market. Yesterday, the market completely ignored the Halifax house price index report in the UK, and the fact that the pair continues to trade within the channel indicates a high probability of further declines for the pound. Considering how active the sellers are at the slightest rise in the pair, there can be no doubt about testing monthly lows in the near future. However, this requires economic reports, which we do not have today. As for the intraday strategy, I will focus more on implementing scenarios No. 1 and No. 2.

Buy signals

Scenario No 1. Today, I plan to buy the pound when the price reaches the entry point in the area of 1.2706, plotted by the green line on the chart, with the goal of rising to 1.2738, plotted by the thicker green line on the chart. In the area of 1.2738, I plan to exit long positions and sell the pound in the opposite direction, counting on a movement of 30-35 pips from the level. It is unlikely for the pound to show a strong rise in the first half of the day, so be careful when buying against the trend. Important: Before buying, ensure the MACD indicator is above the zero mark and starting to rise from it.

Scenario No 2. I also plan to buy the pound today if the price at 1.2684 is tested twice consecutively when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reverse market upturn. One can expect growth to the opposite levels of 1.2706 and 1.2738.

Sell signals

Scenario No 1. Today, I plan to sell the pound after testing 1.2684 plotted by the red line on the chart, which will lead to a rapid decline in GBP/USD. The key target for sellers will be 1.2652, where I will exit short positions and immediately open long positions in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from that level). You can sell the pound if buyers fail in the area of the intraday high. Important: Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario No 2. I also plan to sell the pound today in case of two consecutive price tests of 1.2706 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reverse market downturn. One can expect a decline to the opposite levels of 1.2684 and 1.2652.

What's on the chart:

Thin green line: the entry price at which you can buy the trading instrument.

Thick green line: the estimated price at which you can set Take Profit or manually close positions, 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: an estimated price at which you can place Take Profit or manually close positions, as further decline below this level is unlikely.

MACD indicator: when entering the market, it is essential to be guided by overbought and oversold zones.

Important: Novice traders in the forex market must be cautious when deciding to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. You must set stop orders to avoid losing your entire deposit, especially if you don't use money management and trade in large volumes.

Remember, a clear trading plan, like the one I've outlined, is essential for successful trading. Making impulsive decisions based on the current market situation is a losing strategy for novice intraday traders.