Trading plan for GBP/USD on April 29. Simple tips for beginners

The GBP/USD pair also fell on Friday, but this did not have a significant impact. From a technical perspective, the downward trend remains intact while the pair goes through a correction. The corrective phase may end on Monday. Currently, there are no clear technical references apart from the levels. The correction is too weak to form a trend line, and the downtrend is too short-term to establish a trend line. Therefore, the pound is moving cautiously, which naturally does not inspire traders when they open trading positions.

The recent US reports were not the best. However, we can look forward to a series of important reports and events. Data on the labor market, the FOMC meeting, Federal Reserve Chair Jerome Powell's speech—all of these will determine the market's attitude towards the dollar for the next few weeks. We still believe that the dollar should rise further, as we consider the global fundamental background to be positive for the dollar rather than for the British pound.

Several trading signals were generated on the 5-minute timeframe. Novice traders could see that practically all the signals were quite accurate. Initially, the pair rebounded from the level of 1.2502, then twice from the level of 1.2541, and then from the level of 1.2457. Thus, beginners could open four trading deals on Friday. If the first and second deals resulted in a small profit, a trader could earn about 50 pips on the third one. Traders could skip the last buy signal since it formed too late, but those who chose to execute this signal still managed to make profit.

On the hourly chart, the GBP/USD pair has excellent prospects for forming a downward trend, but is currently going through a correction. After surpassing the level of 1.2502, traders may expect a significant decline from the pound. The fundamental and macroeconomic backdrop continues to support the dollar much more than the British pound. Therefore, we only expect downward movement from the pair.

Today, novice traders can look for new sell signals around the level of 1.2502. The market is not in a rush to sell the pair, but the pound is gradually depreciating in the medium term, which is a good sign. The pair may continue to go through a corrective phase on Monday and Tuesday, as the macroeconomic background will be weak for both the dollar and the pound.

The key levels on the 5M chart are 1.2270, 1.2310, 1.2372-1.2387, 1.2457, 1.2502, 1.2544, 1.2605-1.2611, 1.2648, 1.2691, 1.2725, 1.2787-1.2791. On Monday, there are no important events scheduled in either the UK or the US. Therefore, traders will have nothing to react to, and volatility could be weak.

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.