FX.co ★ GBP/USD: Simple Trading Tips for Beginner Traders for August 19 (U.S. Session)

Analysis of Trades and Tips for Trading the British Pound

Due to the extremely low volatility of the pound and the absence of significant fundamental statistics in the first half of the day, I did not make any trades. The levels I had identified were not tested, so there were no clear entry points. During the U.S. session, there are some statistics scheduled, but they are unlikely to significantly impact the market, so it's better to trade in the direction of the existing uptrend, taking advantage of any declines in the pound. The U.S. Leading Indicators Index and FOMC member Christopher Waller's speech are the key events to monitor. For the intraday strategy, I plan to follow Scenarios 1 and 2.

Buy Signal

Scenario 1: Today, I plan to buy the pound upon reaching the entry point around 1.2974 (the green line on the chart) with a target of rising to the 1.2998 level (the thicker green line on the chart). At 1.2998, I will exit the market and open short positions in the opposite direction, targeting a price movement of 30-35 points from this level. The pound's rise can be expected as the uptrend continues, but only after weak U.S. statistics. Important: Before buying, ensure that the MACD indicator is above the zero line and just starting to rise from it.

Scenario 2: I also plan to buy the pound today in case of two consecutive tests of the 1.2954 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. A rise to the levels of 1.2974 and 1.2998 can be expected.

Sell Signal

Scenario 1: I plan to sell the pound today after the level of 1.2954 (the red line on the chart) is broken, which will lead to a quick decline in the pair. The key target for sellers will be the 1.2926 level. At this point, I will exit short positions and immediately open long positions in the opposite direction, targeting a price movement of 20-25 points. Sellers will become active if there is no significant trading activity around the new weekly high and strong U.S. data. Important: Before selling, ensure that the MACD indicator is below the zero line and just starting its decline from it.

Scenario 2: I also plan to sell the pound today in case of two consecutive tests of the 1.2974 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decline to the levels of 1.2954 and 1.2926 can be expected.

Chart Details:

• Thin Green Line – The entry price for buying the trading instrument.
• Thick Green Line – The anticipated price where you can set a take profit or manually lock in profits, as further growth above this level is unlikely.
• Thin Red Line – The entry price for selling the trading instrument.
• Thick Red Line – The anticipated price where you can set a take profit or manually lock in profits, as further declines below this level are unlikely.
• MACD Indicator – When entering the market, it's important to consider the overbought and oversold zones.

Important: Beginner traders in the forex market should make entry decisions very cautiously. It's best to stay out of the market before the release of important fundamental reports to avoid sharp exchange rate fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

Remember that successful trading requires a clear trading plan, like the one outlined above. Making spontaneous trading decisions based on the current market situation is a fundamentally losing strategy for an intraday trader.