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FX.co ★ GBP/USD: trading tips for beginners for European session on June 19

GBP/USD: trading tips for beginners for European session on June 19

Overview of trading and tips on GBP/USD

The price test of 1.2692 occurred at a time when the MACD indicator was just starting to rise from the zero mark, which confirmed the correct entry point to buy the pound. As a result, GBP/USD rose by about 17 pips, and that was the end of it. The absence of UK data weighed on the pair in the first half of the day, but weak U.S. retail sales data revived demand for the pound.

GBP/USD: trading tips for beginners for European session on June 19

Today, the key focus is on the UK inflation data. Reports on the UK Consumer Price Index, core prices, which the Bank of England pays special attention to, and producer prices may also provide fresh impetus. The pound could rise if inflation increases and if the Bank of England shows a wait-and-see stance, which is striving to achieve good results in price regulation. A decrease in inflation could significantly affect the pound, leading to its decline against the dollar as the chances of an imminent BoE rate cut increases. As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and 2.

Buy signals

Scenario No. 1. I plan to buy the pound today when GBP/USD reaches the entry point at 1.2718 plotted by the green line on the chart, aiming for growth to 1.2762 plotted by the thicker green line on the chart. In the area of 1.2762, I'm going to close long positions and open short ones in the opposite direction (expecting a movement of 30-35 pips in the opposite direction from the level). You can count on the pound's growth today after breaching the intraday high, but the growth should be accompanied by good inflation data. Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.

Scenario No. 2. I also plan to buy the pound today in case of two consecutive tests of the price of 1.2687 at the time when the MACD indicator is in the oversold area. This will limit the downward potential of the instrument and lead to an upward reversal of the market. We can expect growth to the opposite levels of 1.2718 and 1.2762.

Sell signals

Scenario No. 1. I plan to sell the pound today after testing the level of 1.2687 (the red line on the chart), which will lead to a rapid decline in GBP/USD. The key target for sellers will be 1.2644, where I am going to close short positions and also open long positions in the opposite direction (expecting a movement of 20-25 pips in the upward direction from that level). You can sell the pound after the pair fails to consolidate near the intraday high. Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario No. 2: I also plan to sell the pound today in case of two consecutive tests of 1.2718 at the time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal of the market. We can expect a decline to the opposite level of 1.2687 and 1.2644.

GBP/USD: trading tips for beginners for European session on June 19

What's on the chart:

The thin green line is the entry price at which you can buy the trading instrument.

The thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

The thin red line is the entry price at which you can sell the trading instrument.

The thick red line is the price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line: it is important to be guided by overbought and oversold areas when entering the market

Important: Novice traders in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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