FX.co ★ GBP/USD: trading tips for beginners for the European session on July 3

Overview of trading and tips on GBP/USD

The price test of 1.2670 occurred when the MACD indicator had moved significantly above the zero mark, which in my opinion, limited the pair's upward potential. For this reason, I did not buy the pound. After some time, there was another price test, and it happened when the MACD was in the overbought area, so the second sell scenario could be implemented. However, GBP/USD did not actively fall. Today, the pair may continue to rise as we await the UK Services PMI and composite PMI data, which are not expected to show disappointing figures. Considering how actively the pound was bought yesterday, good macroeconomic indicators will be another reason to test the weekly high. As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and 2.

Buy signals

Scenario No 1. Today, I plan to buy the pound when the price reaches the entry point at 1.2693 plotted by the green line on the chart, aiming for a rise to the level of 1.2725 plotted by the thicker green line on the chart. Around 1.2725, I plan to exit the long positions and sell the pound in the opposite direction, counting on a movement of 30-35 pips from the level. You can count on the pound to rise today, but only after good PMI 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 at 1.2675 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reverse market upturn. One can expect growth to the opposite levels of 1.2693 and 1.2725.

Sell signals

Scenario No 1. Today, I plan to sell the pound after testing the level of 1.2675 plotted by the red line on the chart, which will lead to a rapid decline in GBP/USD. The key target for sellers will be 1.2645, 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 opposite direction from that level). You can sell the pound after disappointing data. 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 price tests of 1.2693 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reverse market downturn. One can expect a decline to the opposite levels of 1.2675 and 1.2645.

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 estimated price where you can set Take-Profit (TP) or manually close positions, 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 close positions, 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 forex market need to be very careful 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 in large volumes.

And 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.