09.08.202418:46 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on August 9 (U.S. Session)

Analysis of Trades and Tips for Trading the British Pound

The test of the 1.2760 level occurred when the MACD indicator was just beginning to rise from the zero mark, confirming the correct entry point for buying the pound in anticipation of further growth, continuing yesterday's trend. Unfortunately, after a 10-point upward movement, demand for the pound weakened, affecting its upward potential and leading to a downward correction of the pair. It's clear that we are unlikely to see anything significant in the second half of the day, given the lack of U.S. data and scheduled speeches by Federal Reserve representatives. For this reason, it's better to trade inside the new channel. Regarding the intraday strategy, I plan to act based on the implementation of Scenario #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound when it reaches the entry point around 1.2770 (the green line on the chart) with the target of rising to the 1.2802 level (a thicker green line on the chart). At 1.2802, I will exit my purchases and open sales in the opposite direction, targeting a move of 30-35 points in the opposite direction from that level. It's unlikely that the pound will continue to rise today, especially after this morning's failure. Important: Before buying, make sure that the MACD indicator is above the zero mark and is just beginning to rise from it.

Scenario #2: I also plan to buy the pound today if the 1.2742 price level is tested twice consecutively when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. A rise to the opposite levels of 1.2770 and 1.2802 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound today after it breaks below the 1.2742 level (the red line on the chart), which will likely lead to a rapid decline in the pair. The key target for sellers will be the 1.2710 level, where I will exit my sales and immediately buy the pound, targeting a move of 20-25 points in the opposite direction. Sellers are also unlikely to be very active today, so it's better to act at higher levels. Important: Before selling, make sure that the MACD indicator is below the zero mark and is just beginning its decline from it.

Scenario #2: I also plan to sell the pound today if the 1.2770 price level is tested twice consecutively when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decline to the opposite levels of 1.2742 and 1.2710 can be expected.

Chart Overview:

• Thin green line – The entry price at which you can buy the trading instrument.
• Thick green line – The suggested price where you can set Take Profit or manually fix profits, 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 – The suggested price where you can set Take Profit or manually fix profits, as further decline below this level is unlikely.
• MACD Indicator – When entering the market, it is important to consider overbought and oversold zones.

Important: Beginner traders on the Forex market need to be very cautious when making entry decisions. It is best to stay out of the market before the release of important economic reports to avoid being caught in sharp price swings. 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 don't use risk management and trade with large volumes.

And remember, for successful trading, it is essential to have a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are a losing strategy for an intraday trader.