empty
05.09.2024 04:53 PM
GBP/USD: Simple Trading Tips for Beginner Traders for September 5 (U.S. Session)

Analysis of Deals and Trading Tips for the British Pound

The test of the 1.3140 price level coincided with a moment when the MACD indicator had moved significantly downward from the zero mark, which limited the pair's downward potential. For this reason, I did not sell the pound. The second test of this level shortly after occurred when the MACD was in the oversold zone. This confirmed an optimal entry point for buying the pound, resulting in a 30-point rise. Data on the PMI for the UK construction sector helped the pound stay afloat during the first half of the day. During the U.S. session, we expect reports on ADP employment change and the number of initial jobless claims. If they come in below economists' forecasts, you can sell the dollar and buy the pound again, similar to yesterday's scenario. However, if the data exceeds expectations, risk assets may come under additional pressure. Reports on the ISM services index and the composite PMI will be secondary. Regarding intraday strategy, I plan to act based on the execution of Scenario #1 and Scenario #2.

This image is no longer relevant

Buy Signal

Scenario #1: I plan to buy the pound today upon reaching the entry point around 1.3173 (green line on the chart) with a target of rising to the 1.3205 level (thicker green line on the chart). Around 1.3205, I will exit purchases and open sales in the opposite direction (expecting a 30-35 point movement downward from the level). The pound's rise today can be expected if U.S. data underperforms. Important: Before buying, ensure the MACD indicator is above the zero mark and just starting to rise.

Scenario #2: I also plan to buy the pound today in the event of two consecutive tests of the 1.3145 price level when the MACD is in the oversold zone. This will limit the pair's downward potential and could trigger a market reversal upward. A rise can be expected toward the levels of 1.3173 and 1.3205.

Sell Signal

Scenario #1: I plan to sell the pound today after breaking below the 1.3145 level (red line on the chart), which will lead to a quick decline of the pair. The key target for sellers will be the 1.3111 level, where I plan to close sell positions and immediately open buy positions in the opposite direction (expecting a 20-25 point movement upward from the level). Sellers will likely gain strength if the U.S. economic data comes in strong. Important: Before selling, ensure the MACD indicator is below the zero mark and just starting to fall.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the 1.3173 price level when the MACD is in the overbought zone. This will limit the pair's upward potential and could trigger a market reversal downward. A decline can be expected toward the levels of 1.3145 and 1.3111.

This image is no longer relevant

Chart Analysis:

  • Thin green line: The entry price to buy the trading instrument.
  • Thick green line: The anticipated 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 to sell the trading instrument.
  • Thick red line: The anticipated price where you can set Take Profit or manually fix profits, as further decline below this level is unlikely.
  • MACD Indicator: It's essential to rely on overbought and oversold zones when entering the market.

Important: Beginner traders in the forex market must make market entry decisions cautiously. Before the release of significant fundamental reports, it is best to stay out of the market to avoid sharp price swings. 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're not using money management and trading large volumes.

And remember, successful trading requires having a clear trading plan, like the one I've outlined above. Making impulsive trading decisions based on current market conditions is generally a losing strategy for an intraday trader.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY: Simple Trading Tips for Beginner Traders on January 22nd (U.S. Session)

The test of the 156.06 price level occurred when the MACD indicator had already moved significantly above the zero mark, clearly limiting the pair's upward potential—especially after increased market expectations

Jakub Novak 14:34 2025-01-22 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on January 22nd (U.S. Session)

The test of the 1.2312 level occurred when the MACD indicator had already moved significantly below the zero mark, clearly limiting the pair's downward potential. For this reason

Jakub Novak 14:31 2025-01-22 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on January 22nd (U.S. Session)

Analysis of Trades and Trading Tips for the Euro The test of the 1.0427 level occurred when the MACD indicator had already moved significantly above the zero mark, which clearly

Jakub Novak 14:28 2025-01-22 UTC+2

XAU/USD: Analysis and Forecast

Gold prices have sustained positive momentum for three consecutive days. Optimistic market sentiment, coupled with the recovery in U.S. Treasury yields and a moderate strengthening of the U.S. dollar, acts

Irina Yanina 11:31 2025-01-22 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on January 22. Analysis of Yesterday's Forex Trades

The test of the 155.76 price level coincided with the moment when the MACD indicator began to move downward from the zero mark, confirming a valid entry point for selling

Jakub Novak 08:34 2025-01-22 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on January 22. Analysis of Yesterday's Forex Trades

In the second half of the day, the test of the 1.2260 price level coincided with the MACD indicator beginning to rise from the zero mark. This confirmed a valid

Jakub Novak 08:34 2025-01-22 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on January 22. Analysis of Yesterday's Forex Trades

The test of the 1.0372 price level in the second half of the day coincided with when the MACD indicator began to move upward from zero, confirming a valid market

Jakub Novak 08:34 2025-01-22 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on January 21st (U.S. Session)

The test of the 155.88 price level occurred when the MACD indicator had already moved significantly above the zero line, limiting the pair's upward potential—especially after rising market expectations regarding

Jakub Novak 14:47 2025-01-21 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on January 21st (U.S. Session)

The test of the 1.2239 price level occurred when the MACD indicator had already dropped significantly below the zero line, clearly limiting the pair's downward potential. For this reason

Jakub Novak 14:43 2025-01-21 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on January 21st (U.S. Session)

The test of the 1.0355 price level occurred when the MACD indicator had already dropped significantly below the zero line, which clearly limited the pair's downward potential. For this reason

Jakub Novak 14:39 2025-01-21 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.