Trading plan for GBP/USD on September 27. Simple tips for beginners

The GBP/USD remains under bearish pressure on Tuesday. As seen in the chart above, it continues to fall both day and night, albeit very mild. The decline has been weak but is quite stable and consistent, as it occurs every day. Therefore, the pound continues to fall, as we anticipated. Of course, after 5-6 months of unwarranted growth, luck and fortune have turned away from the British pound. Therefore, we believe it is logical for the pair to fall.

There were no important macroeconomic or fundamental events in either the United States or the United Kingdom. One relatively important report on new home sales was published in the U.S., which turned out to be worse than expected. Nevertheless, the dollar rose at the end of the day. So, at the moment, it doesn't really matter what the reports are as the pound will continue to fall. Of course, it would be good for the pair to correct higher, but there is no sign of a brewing correction yet.

There were several similar trading signals on the 5-minute chart that didn't make much sense to execute. Despite falling almost every day, volatility leaves much to be desired. It was 56 pips on Tuesday. With such volatility, it's very difficult to rely on hitting target levels. In general, during the European session, the price rebounded from the 1.2171-1.2179 area five or six times. It was already clear that there would be no intraday trend. Beginners could have opened a long position, which could have resulted in a small loss or break-even during the day.

On the 30-minute chart, GBP/USD continues to gradually fall. In the near future, a small correction is possible (simply because it is necessary for technical reasons), but we expect the pound to continue falling in the long run. At the moment, there are no signs of a correction, and the GBP/USD pair provides negative trading. The key levels on the 5M chart are 1.1992-1.2008, 1.2065-1.2079, 1.2143, 1.2171-1.2179, 1.2235, 1.2307, 1.2372-1.2394, 1.2457-1.2488, 1.2544, 1.2605-1.2620, 1.2653, 1.2688. Once the price moves 20 pips in the right direction after opening a trade, you can set the stop-loss at breakeven. On Wednesday, there are no important events scheduled in the UK, while the US will release a report on durable goods orders.

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.