20.08.202415:01 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on August 20 (U.S. Session)

Analysis of Trades and Advice on Trading the British Pound

Due to extremely low pound volatility and the absence of significant fundamental data in the first half of the day, I ended up without any trades. The levels I had designated were not tested, so there were no clear entry points into the market. There is also no significant data during the U.S. session, so a major shift in market sentiment is unlikely. The key events anticipated for the second half of the day are speeches by FOMC members Bostic and Barr. A dovish tone from these policymakers could further weaken the dollar, leading to continued growth in GBP/USD. As for the intraday strategy, I plan to act based on Scenarios 1 and 2.

Buy Signal

Scenario 1: Today, I plan to buy the pound if it reaches around 1.3013 (green line on the chart), targeting a rise to 1.3051 (thicker green line on the chart). Around 1.3051, I will exit the purchase and open a sell position, expecting a movement of 30-35 points from the level. The pound's rise today is likely as a continuation of the uptrend, but only after dovish remarks from Federal Reserve representatives. It's important to ensure that the MACD indicator is above the zero line and just beginning its upward movement before buying.

Scenario 2: I also plan to buy the pound today if there are two consecutive tests of the 1.2984 price level when the MACD indicator is in the oversold area. This will limit the pair's downward movement and likely cause an upward reversal. Growth can be expected toward the resistance levels at 1.3013 and 1.3051.

Sell Signal

Scenario 1: Today, I plan to sell the pound after it breaks below the 1.2984 level (red line on the chart), which will lead to a rapid decline in the pair. The key target for sellers will be the 1.2944 level, where I will exit the sell position and open a buy position, expecting a movement of 20-25 points from the level. Sellers will assert themselves if there is no significant activity around the new weekly high, especially if any FOMC member adopts a hawkish stance. It's important to ensure that the MACD indicator is below the zero line and just beginning its downward movement before selling.

Scenario 2: I also plan to sell the pound today if there are two consecutive tests of the 1.3013 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and likely cause a downward reversal. A decline can be expected towards the support levels at 1.2984 and 1.2944.

Chart Overview:

• Thin green line: Entry price to buy the trading instrument.
• Thick green line: Expected price level where you can set Take Profit or manually lock in profits, as further growth above this level is unlikely.
• Thin red line: Entry price to sell the trading instrument.
• Thick red line: Expected price level where you can set Take Profit or manually lock in profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it's important to be guided by overbought and oversold zones.

Important: Beginner traders in the Forex market should be very cautious when making decisions about entering the market. Before the release of significant fundamental reports, it's best to stay out of the market to avoid sharp price fluctuations. If you choose to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

And remember, to trade successfully, you need a clear trading plan, like the one I've outlined above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for an intraday trader.