Trading plan for GBP/USD on August 22. Simple tips for beginners

The GBP/USD pair showed absolutely nothing new at the end of the first day of the new week. We deliberately reduced the scale of the 30-minute timeframe so that traders could see firsthand how the pair has been moving for about three weeks. In the chart above, you can see that the pair traded between the levels of 1.2620 and 1.2787. In other words, we obviously have a sideways channel, and intraday movements correspond to the nature of the flat on the 30-minute chart.

The only thing that follows from this is that trading the pound right now is extremely inconvenient and even dangerous. Volatility was 55 points, which is quite small. There was nothing lined up in the UK or the US. The pair has been flat for three weeks. And there's nothing more to say.

Several trading signals were formed on the 5-minute chart, but they all left much to be desired. During the Asian trading session, the pair bounced off the 1.2748 level, and at the beginning of the European session, it was possible to open a trade based on this signal, as the price had not moved far from this point by that time. However, the pair only managed to fall by 25 pips, enough to set a Stop Loss at breakeven, at which the trade closed. However, the next buy signal near the same level was even "better." This time the price couldn't even move 20 pips in the right direction, so a small loss was incurred here. The last two signals should not have been executed, as the first two turned out to be false.

On the 30-minute chart, the GBP/USD pair continues to move in a sideways channel. We still expect the pound to fall, as we still believe it is overbought and unreasonably expensive. However, the market has taken a break for now, so either trade within the sideways channel or wait for the flat to end. The key levels on the 5M chart are 1.2499, 1.2538, 1.2605-1.2620, 1.2653, 1.2688, 1.2748, 1.2787-1.2791, 1.2848-1.2860, 1.2913. Once the price moves 20 pips in the right direction after opening a trade, you can set the stop-loss at breakeven. No important events lined up for the UK and the US, so the pair will likely move sideways again.

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.