FX.co ★ GBP/USD: Simple trading tips for beginner traders on June 4th (US Session)

Trade Analysis and Tips for Trading the British Pound

The test of the price at 1.2768 occurred when the MACD indicator had moved significantly below the zero mark, limiting the pair's downward potential. For this reason, I did not sell the pound. In the second half of the day, there will be a lot of US statistics, which could lead to significant movements, though unlikely in favor of the pound. Expected data includes job openings and labor turnover from the Bureau of Labor Statistics and changes in US factory orders. Strong figures will push GBP/USD down further, allowing sellers to recover all of yesterday's losses. Regarding the intraday strategy, I plan to act based on the implementation of scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound at the entry point around 1.2770 (green line on the chart) with a target of rising to the level of 1.2809 (thicker green line on the chart). Around 1.2809, I will exit the buys and open sell positions in the opposite direction (expecting a movement of 30-35 points in the opposite direction from the level). The pound is likely to rise today only in case of very weak US statistics and within a minor correction at the end of the day. Important! Before buying, ensure that the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the price at 1.2748 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. We can expect growth to the opposite levels of 1.2770 and 1.2809.

Sell Signal

Scenario #1: I plan to sell the pound today after it breaks below the level of 1.2748 (red line on the chart), leading to a rapid decline in the pair. The key target for sellers will be the level of 1.2712, where I will exit the sells and immediately open buy positions in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Sellers will emerge in case of strong US data. Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting to decline from it.

Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the price at 1.2770 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. We can expect a decline to the opposite levels of 1.2748 and 1.2712.

Chart Explanation:

• Thin green line: Entry price at which you can buy the trading instrument.
• Thick green line: Estimated price where you can set Take Profit or manually fix profits, as further growth above this level is unlikely.
• Thin red line: Entry price at which you can sell the trading instrument.
• Thick red line: Estimated price where you can set Take Profit or manually fix profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it is important to use overbought and oversold zones.

Important: Beginner traders in the forex market need to make entry decisions very cautiously. It is best to stay out of the market before the release of important fundamental reports to avoid sudden price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

Remember: Successful trading requires a clear trading plan, similar to the one I have presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.