Trading plan for GBP/USD on September 20. Simple tips for beginners

GBP/USD remained subdued on Tuesday. We can't really say that the pair corrected or continued to trade lower. The nature of the movement is best seen on the 5-minute chart, which generally showed a flat pattern. It briefly resembled a trend, but this was short-lived. While the EUR/USD pair had two minor reports, which had very little chance of impacting the charts, the GBP/USD pair had just one report. The number of building permits issued in the United States exceeded expectations, and the dollar edged up at the beginning of the US trading session, but this had virtually no impact. Thus, the downtrend persists, but many things could change on Wednesday and Thursday, as the fundamental and macroeconomic backdrop will be quite influential.

On the 5-minute chart, the pair continued to trade in a flat. The price range remained unchanged compared to Monday, ranging from 1.2372 to 1.2394. Only once did the price manage to break above this range, potentially tempting beginners to open long positions. However, they did not make any profit from this trade, and it wasn't worth it. The pair has been trading in a flat phase with low volatility for several days now. Throughout the European session, the price remained generally unchanged. Therefore, it was naive to expect a strong signal and substantial profit.

On the 30-minute chart, GBP/USD has ended a vague correction and has already resumed its downward movement. It's the same movement that we have been expecting since the beginning of 2023. The pair could correct higher this week due to the strong fundamental backdrop on Wednesday and Thursday. The key levels on the 5M chart are 1.2245, 1.2307, 1.2372-1.2394, 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 Wednesday, the UK will release the inflation report for August, which is significant for the market, the British pound, and the Bank of England. Therefore, there could be a relatively strong reaction to this report. In the evening, the results of the FOMC meeting will be announced, which could also stir some market reaction.

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.