GBP/USD trading plan for February 9, 2022. Trading tips for beginners

The pound/dollar pair was flat on Tuesday. While the euro/dollar pair was descending slightly, the pound/dollar pair was somewhat ascending. However, this was of little help to traders. According to the chart above, the price traded in the range between 1.3488 and 1.3580 and approached neither of the cannel's limits. There were no signals, no trend, no macroeconomic data, no fundamentals. Traders had nothing to react to on Tuesday. Therefore, daily volatility was just 56 pips. This week, significant reports are expected only on Thursday and Friday. That is why Wednesday is likely to be another calm day in the market. However, there is nothing we can do about it. The only thing that has left is to wait for the end of the sideways move.

In the M5 time frame, the pound/dollar pair could show good results on Tuesday. However, the level of 1.3551 did not let that happen. As a reminder, this point was the high of the previous day. The price tested the level several times but managed to consolidate 10 pips above it just once. Such fixing should not be considered a rebound. Therefore, beginner traders could open long positions at the time of consolidation. Earlier, they could enter short positions after the signal to sell the instrument had been produced when the price bounced off 1.3551. So, we had two unprofitable trades on Tuesday. Interestingly, the pair was in a trend in the European session. Therefore, it was impossible to call the market flat from the start. Unfortunately, there are unprofitable days in the market. You simply cannot yield profits all the time. Let's hope the price will move in a trend on Wednesday despite the empty macroeconomic calendar. The level of 1.3551 lost its relevance on Tuesday. The target level on Wednesday stands at 1.3563.

In the 30M time frame, the downtrend has emerged. Technically, it may extend. However, the pair has mainly moved sideways so far. Therefore, the flat may continue on Wednesday due to the empty macroeconomic calendar. The target levels in the 5M time frame are seen at 1.3431-1.3439, 1.3488, 1.3563, and 1.3598-1.3603. A stop-loss order should be placed at the breakeven point after the price has passed 20 pips in the right direction. Wednesday's macroeconomic calendar will be empty both in the United States and the United Kingdom. Moreover, no important fundamentals are expected. So, there will be no events to react to. If it becomes clear that the flat is going to continue on Wednesday, traders may not enter the market. However, a strong signal may reverse the situation. Indeed, the sideways movement will not last forever.

1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.

2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.

3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.

4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.

5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.

6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.

Support and resistance price levels can serve as targets when buying or selling. You can place Take Profit near them.

Red lines are channels or trend lines that display the current trend and show which direction is better to trade.

MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.

Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.

Beginner traders should remember that every trade cannot be profitable. The development of a reliable strategy and money management is the key to success in long-term trading.