17.05.202417:07 Forex Analysis & Reviews: GBP/USD: Simple trading tips for novice traders on May 17th (US session)

Analysis of trades and tips for trading the British pound

The test of the 1.2651 price level occurred when the MACD indicator started moving down from the zero mark, confirming a sell signal for the pound. However, as you can see on the chart, a significant drop in the pair did not materialize. The absence of UK statistics once again did not benefit the pound. The second half of the day is expected to follow the same scenario since there are no significant statistics from the United States during the American session. This means low trading volumes and low market volatility. Regarding intraday strategy, I plan to act based on scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, I plan to buy the pound at the entry point around 1.2662 (green line on the chart) with a target of rising to 1.2689 (thicker green line). Around 1.2689, I will exit the buys and open sell positions in the opposite direction (expecting a movement of 30-35 points in the opposite direction from the level). Today, the rise of the pound can be expected only within the sideways channel. Important! Before buying, make sure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario No. 2: I also plan to buy the pound today in case of two consecutive tests of the 1.2642 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Expect a rise to the opposite levels of 1.2662 and 1.2689.

Sell Signal

Scenario No. 1: Today, I plan to sell the pound after breaking the 1.2642 level (red line on the chart), leading to a quick drop in the pair. The key target for sellers will be 1.2615, where I will exit the sales and open buy positions in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Sellers will be active if there is no activity around the daily high at the upper boundary of the sideways channel. Important! Before selling, make sure the MACD indicator is below the zero mark and starting to decline from it.

Scenario No. 2: I also plan to sell the pound today in case of two consecutive tests of the 1.2662 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. Expect a decline to the opposite levels of 1.2642 and 1.2615.

What the chart shows:

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: Estimated price for setting Take Profit or manually fixing profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: Estimated price for setting Take Profit or manually fixing profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it is crucial to consider overbought and oversold areas.

Important: Beginner traders in the Forex market should be cautious when making market entry decisions. It is best to stay out of the market before important fundamental reports to avoid sharp price 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 large volumes.

Remember, successful trading requires a clear plan, like the one I presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.