Trading plan for GBP/USD on April 10. Simple tips for beginners

The GBP/USD pair continued its upward movement, which began last week after traders failed to break out of the 1.25-1.28 sideways channel. An ascending trend line was formed, and according to the laws of the flat, the price may now move towards the upper boundary of the sideways channel for a few weeks. Fundamental and macroeconomic backgrounds currently have no significance. They can only have a local impact on traders' sentiment. For instance, today's U.S. inflation report may provoke a market reaction, but this will not affect the general sentiment, as the pair is trading in a flat anyway. And the situation will not change until the pair leaves the sideways channel.

We have repeatedly said that there are plenty of reasons for the pound to start falling against the dollar. If this does not happen, it means that the pair is showing illogical movements. Therefore, the market is currently ignoring the fundamentals and macroeconomics.

Several signals were formed on the 5-minute timeframe, and traders could earn a little profit. Unfortunately, volatility was low again. During the European trading session, the price rebounded from the level of 1.2648, after which it managed to climb above the level of 1.2691. Long positions could be closed when the price settled below this mark, and traders could open shorts. The profit was about 15 pips. Traders could earn another 10 pips on the shorts, and these trades should be closed manually in the evening.

On the hourly chart, the GBP/USD pair is likely starting a new upward movement within the flat range. Unfortunately, the market doesn't always trade in a logical manner, and on a global scale, the flat persists. Therefore, in the coming weeks, we can expect the pair to rise towards the 1.2800 level, but it's still showing erratic movements, with hardly any logic behind them.

On Wednesday, novice traders may look for buy signals as they have an ascending trend line at their disposal. However, the U.S. inflation report could provoke short-term dollar growth, so traders should be prepared for that as well.

The key levels on the 5M chart are 1.2372-1.2387, 1.2457, 1.2502, 1.2544, 1.2605-1.2611, 1.2648, 1.2691, 1.2725, 1.2787-1.2791, 1.2848-1.2860, 1.2913, 1.2981-1.2993. Today, there are no important events scheduled in the UK. Moving forward, traders will focus on the U.S. inflation data. If inflation accelerates this would mean that the Federal Reserve may further postpone the first rate cut, but this factor does not have global significance for the dollar.

1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.

2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.

3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.

4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, after which all open trades should be manually closed.

5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trendline or trend channel.

6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.

Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.

Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.

The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.

Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.

Beginners should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.