07.08.202414:27 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on August 7 (U.S. Session)

Analysis of Trades and Tips for Trading the British Pound

The test of the 1.2693 price level occurred when the MACD indicator had just started to move down from the zero mark, confirming it as a correct entry point for selling in continuation of the downward trend. Unfortunately, the decline did not materialize, resulting in losses. In the second half of the day, we expect only the report on consumer credit volume in the U.S., which has little market influence. Therefore, the pound may further correct upwards, allowing for sales at more favorable prices. Regarding the intraday strategy, I plan to act based on the implementation of scenarios #1 and #2 for selling.

Buy Signal

Scenario #1: Today, I plan to buy the pound upon reaching the entry point around 1.2735 (green line on the chart) with the target of rising to the level of 1.2762 (thicker green line on the chart). Around 1.2762, I will exit long positions and open short positions in the opposite direction (expecting a movement of 30-35 points in the opposite direction from the level). Growth in the pound today can be expected only after weak U.S. data. Important: Before buying, make sure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: Today, I also plan to buy the pound in case of two consecutive tests of the 1.2700 price 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 can be expected to the levels of 1.2735 and 1.2762.

Sell Signal

Scenario #1: Today, I plan to sell the pound after the level of 1.2700 (red line on the chart) is updated, leading to a quick decline in the pair. The key target for sellers will be the level of 1.2666, where I will exit sales and immediately open purchases in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Sellers will reveal their positions, but it's better to act at higher price levels. Important: Before selling, make sure the MACD indicator is below the zero mark and just starting to decline from it.

Scenario #2: Today, I also plan to sell the pound in case of two consecutive tests of the 1.2735 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. Decline can be expected to the levels of 1.2700 and 1.2666.

What's on the Chart:

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: Suggested price for setting Take Profit or manually taking profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: Suggested price for setting Take Profit or manually taking profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it is important to be guided by overbought and oversold zones.

Important:

Beginner forex traders must be very cautious when making market entry decisions. Before the release of important fundamental reports, it is best to stay out of the market to avoid getting caught in sharp price fluctuations. If you decide 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 do not use money management and trade large volumes.

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