29.07.202418:06 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on July 29 (U.S. Session)

Analysis of Trades and Tips for Trading the British Pound

The test of the price at 1.2860 occurred when the MACD indicator had already moved significantly below the zero mark, limiting the pair's further downward potential despite the ongoing bearish market. It is difficult to pinpoint the exact reason for such a drop in the pound, but discussions about the Bank of England potentially lowering interest rates continue to influence market sentiment. There are no upcoming U.S. statistics, giving pound buyers a chance for a slight correction in the pair in the second half of the day, which I plan to take advantage of. 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 1.2849 (green line on the chart) with a target of rising to 1.2881 (thicker green line on the chart). Around 1.2881, I will exit the purchases and open sales in the opposite direction (expecting a move of 30-35 points in the opposite direction from the level). Today's pound rise can only be expected as a small correction. 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 in case of two consecutive tests of the price at 1.2829 when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. Expect growth to the opposite levels of 1.2849 and 1.2881.

Sell Signal

Scenario #1: I plan to sell the pound today after updating the level of 1.2829 (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the level of 1.2804, where I will exit the sales and immediately open purchases in the opposite direction (expecting a move of 20-25 points in the opposite direction from the level). Sellers will only show themselves after a good correction. Important! Before selling, ensure the MACD indicator is below the zero mark and starting to fall from it.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the price at 1.2849 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 1.2829 and 1.2804.

What the Chart Shows:

• Thin green line: Entry price at which you can buy the trading instrument.
• Thick green line: Estimated price where you can set Take Profit or manually lock in profits, as further growth above this level is unlikely.
• Thin red line: Entry price at which you can sell the trading instrument.
• Thick red line: Estimated price 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 is important to consider overbought and oversold areas.

Important: Beginner traders in the forex market must make entry decisions cautiously. Before releasing important fundamental reports, it is best to stay out of the market to avoid sharp exchange rate fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes. Remember that successful trading requires having a clear trading plan, like the one I presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for an intraday trader.