Trading plan for GBP/USD on September 5. Simple tips for beginners

GBP/USD showed a volatility of 55 pips at the end of Monday and spent the whole day leaning towards a bullish correction. This is what we discussed in the morning. A descending trendline has also been formed for the British pound, and it's also quite formal. In recent weeks, the pound sterling has been trading even more erratically than the euro, so anything is possible. Moreover, there are hardly any important reports this week so we shouldn't expect strong movements. Most likely, we can expect a flat movement.

We still expect a sharp fall from the pound because it doesn't have any good reason to rally. Perhaps the market is waiting for the Bank of England to soften its hawkish stance before it decides to increase the volume of short positions. In any case, we do not expect a strong uptrend.

The pair formed three trading signals on the 5-minute chart, which simply duplicated each other. Initially, the pair surpassed the 1.2605-1.2620 range, then rebounded from it twice from above. In the best case, it rose by 10 pips. Therefore, it was not possible to set a Stop Loss to break even, but there could be no loss either because the price could not stay below the 1.2620 level until the end of the day. You could have closed the long position at any point.

On the 30-minute chart, the GBP/USD pair ended a round of bullish correction, but it may start another one this week. The movements are currently confusing, and it's difficult to form a trendline or channel on the charts to understand the current trend. Therefore, you should be cautious when you enter a position. The key levels on the 5M chart are 1.2457, 1.2488, 1.2543, 1.2605-1.2620, 1.2653, 1.2688, 1.2748, 1.2787-1.2791, 1.2848-1.2860. Once the price moves 20 pips in the right direction after opening a trade, you can set the stop-loss at breakeven. On Tuesday, there are no significant reports or events lined up in the UK and the US. The pair could show weak movements. Today, there's a possibility that the pair will continue to show weak movements similar to that of Friday.

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.