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

GBP/USD traded with a slight bullish bias on Monday. The descending trendline remains relevant, but the euro and the pound moved in a similar manner. There were no influential events or news in the UK and the US, which had a noticeable impact on the market's activity. However, we already expected this. The most interesting events are yet to come.

This week, the pound could correct higher, but it should decline in the medium term. The British currency remains overbought and unjustifiably pricey based on the fundamental background of the last 6-7 months. The UK will release important reports this week, followed by meetings of the Federal Reserve and the Bank of England next week. Therefore, we can still look forward to influential events.

On the 5-minute chart, the pair didn't stay in one place, but volatility was just 80 pips, which isn't much, but still enough to trade the pair and make some profit. The pair formed three trading signals, but they were doubtful and contradictory. A good trading signal was formed during the Asian session when the price broke above the level of 1.2488. However, by the time the European session opened, the price had moved quite far from the entry point.

Next, there were three bounces from the level of 1.2544. All three signals duplicated each other, so only one short position should have been opened. In the end, the price fell by about 20 pips, which traders could have captured by manually closing the short position.

On the 30-minute chart, GBP/USD corrected higher. While movements are currently quite erratic, the downtrend remains notably consistent. This week, the pair may enter corrective phases, but overall, we expect it to behave similarly to the EUR/USD pair. The key levels on the 5M chart are 1.2307, 1.2372, 1.2457, 1.2488, 1.2544, 1.2605-1.2620, 1.2653, 1.2688, 1.2748, 1.2787-1.2791. Once the price moves 20 pips in the right direction after opening a trade, you can set the stop-loss at breakeven. No significant reports or events lined up in the UK and the US. Most likely, we should brace ourselves for another low-volatility day, and it will be quite challenging to trade under such conditions.

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.