FX.co ★ GBP/USD: trading tips for beginners for the European session on July 24

Overview of trading and tips on GBP/USD

The price tests I mentioned did not occur in the afternoon due to a sharp decrease in market volatility. Nevertheless, the pound continued to fall in today's Asian session and reached a new weekly low. The GBP/USD pair's downward movement will largely depend on the PMI data for the UK, which have been quite positive recently. Today, the UK will release data on the Manufacturing PMI, Services PMI—which represents a large portion of the economy—and the composite PMI. If these figures exceed economists' forecasts, it could be a good reason to start buying the British pound, which has recently depreciated significantly. As for the intraday strategy, I will rely more on implementing scenarios No. 1 and 2.

Buy signals

Scenario No 1. Today, I plan to buy the pound when the price reaches the entry point around 1.2902 plotted by the green line on the chart, with the goal of rising to the level of 1.2934 plotted by the thicker green line on the chart. Around 1.2934, I plan to exit long positions and sell the pound in the opposite direction, counting on a movement of 30-35 pips from the level. We can only count on a sharp rise in the first half of the day 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 1.2881 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 1.2902 and 1.2934.

Sell signals

Scenario No 1. Today, I plan to sell the pound after testing the level of 1.2881 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 1.2855, 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 if buyers are not active 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 price tests of 1.2902 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 1.2881 and 1.2855.

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.