Trading plan for GBP/USD on June 12. Simple tips for beginners

The GBP/USD pair also showed astonishing volatility of 50 pips on Friday and managed to extend its upward movement. The upward movement isn't exactly strong at the moment, but the British pound found a reason to rise even on days when the market is flat and traders have no reason to buy. However, over the past few months, we have become accustomed to the pound rising eagerly against the dollar, often illogically, while experiencing relatively weak declines. Unfortunately, it is very difficult to explain the pound's strength in 2023. As we have mentioned before, there are no solid reasons for it to remain so high.

Nevertheless, on the 30-minute chart, there is an ascending trendline that supports further upward movement. Moreover, next week there will be a significant number of important events that could increase volatility and lead to trending movement.

Only one trading signal materialized on the 5-minute chart, which was a good thing. Furthermore, this signal was quite accurate - the pair bounced off the level of 1.2538 and managed to move up by at least 40 pips, and beginners could earn following our advice. The trade should have been manually closed as there was no sell signal for the rest of the day.

As seen on the 30M chart, the GBP/USD pair ended the downtrend and started a new uptrend in the short-term. However, in reality, we haven't observed any significant upward movement yet, but the pound is still rising while, for example, the euro is hardly moving. The rationale behind the pound's growth, as before, raises many questions. We believe that the pound has not fallen enough to form a new strong uptrend, so we're waiting for it to fall. The key levels on the 5M chart are 1.2171-1.2179, 1.2245, 1.2307, 1.2372, 1.2457, 1.2499, 1.2538, 1.2597-1.2616, 1.2659, 1.2697. When the price moves 20 pips in the right direction after opening a trade, a stop loss can be set at breakeven. In the US and the UK, there are no significant events lined up. The pound may extend its upward movement, but the pair will probably go through low volatility and volume.

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 levels 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.

Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.