Trading plan for GBP/USD on September 15. Simple tips for beginners

GBP/USD also slumped on Thursday. What's interesting about this was that it had no reasons to fall, as the European Central Bank meeting pertained to the euro, not the pound. However, the old pattern that the two major pairs usually move in the same direction worked again. Therefore, the pound didn't deviate from this tradition and resumed its decline. It's worth noting that the results of the ECB meeting can confidently be described as hawkish, but at the same time, the direction of the euro and the pound aligns perfectly with our expectations.

Besides the ECB meeting, the US released three reports: retail sales, producer price index, and initial jobless claims. We can confirm that they had no impact on the pair's movement. Their values almost entirely matched the forecasts, so there was essentially nothing to react to. The downtrend persists, and we didn't witness any corrections.

On the 5-minute chart, the pound had several trading signals that were much better than those for the euro. During the European trading session, the price fell below the level of 1.2488, so beginners could open short positions. Then, during the release of the results of the ECB meeting, a stop-loss could be placed at breakeven and traders could remain in shorts. Alternatively, the trade could have been closed to avoid increased risks. In the first case, traders could've hold on to shorts until the end, resulting in a profit of around 70 pips. In the second case, shorts could have been reopened after the rebound from the level of 1.2457 from below, which also brought profit.

On the 30-minute chart, GBP/USD has ended its vague correction. In general, it continues to trade the way we expected. The pound could have traded higher on Thursday, but the market decided otherwise. The key levels on the 5M chart are 1.2245, 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. On Friday, no important reports lined up in the UK, while the US will release two relatively insignificant reports. Thus, the market may calm down on Friday, but we still expect the pound to fall in the medium term.

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.