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FX.co ★ GBP/USD: Simple Trading Tips for Beginner Traders for August 1 (U.S. Session)

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Forex Analysis:::2024-08-01T13:45:23

GBP/USD: Simple Trading Tips for Beginner Traders for August 1 (U.S. Session)

Analysis of Trades and Trading Tips for the British Pound

The pound bid farewell and plunged into the abyss even before the Bank of England's interest rate decision, which, as you may already know, was cut by a quarter point. The test of the 1.2847 price level occurred when the MACD indicator had moved significantly down from the zero mark, limiting the pound's further downward potential, so I missed this entire move. In the second half of the day, we expect statistics on the number of initial jobless claims in the U.S., the ISM manufacturing index, and changes in U.S. construction spending. Additionally, there will be a speech by the Governor of the Bank of England. Strong data will be another reason to sell the pound further along the downward trend. Regarding the intraday strategy, I plan to act based on Scenario #1, despite the MACD indicator readings, as I expect strong and directional movements.

GBP/USD: Simple Trading Tips for Beginner Traders for August 1 (U.S. Session)

Buy Signal

Scenario #1: Today, I plan to buy the pound upon reaching the entry point around 1.2787 (the green line on the chart), with a target of rising to 1.2820 (the thicker green line on the chart). Around 1.2820, I will exit purchases and open sales in the opposite direction, expecting a movement of 30-35 points from the entry point. The pound's rise today can be expected only after a firm stance from the Bank of England. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.

Scenario #2: I also plan to buy the pound today in the case of two consecutive tests of the 1.2759 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Growth can be expected to the opposite levels of 1.2787 and 1.2820.

Sell Signal

Scenario #1: I plan to sell the pound today after the 1.2759 level is updated (the red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the 1.2718 level, where I will exit sales and immediately open purchases in the opposite direction, expecting a movement of 20-25 points from the entry point. Sellers will show their strength only after strong U.S. data. Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting to fall from it.

Scenario #2: I also plan to sell the pound today in the case of two consecutive tests of the 1.2787 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected to the opposite levels of 1.2759 and 1.2718.GBP/USD: Simple Trading Tips for Beginner Traders for August 1 (U.S. Session)

What's on the Chart:

Thin green line: Entry price at which the trading instrument can be bought.

Thick green line: Expected price where Take Profit can be set, or profits can be manually fixed, as further growth above this level is unlikely.

Thin red line: Entry price at which the trading instrument can be sold.

Thick red line: Expected price where Take Profit can be set, or profits can be manually fixed, as further decline below this level is unlikely.

MACD Indicator: When entering the market, it is important to be guided by overbought and oversold zones.

Important: Beginner traders in the forex market should make market entry decisions cautiously. It is best to stay out of the market before significant fundamental reports are released to avoid sharp price swings. If you decide to trade during news releases, always set stop-loss orders to minimize losses. You can quickly lose your entire deposit without stop-loss orders, especially if you do not use money management and trade with large volumes.

Remember, successful trading requires a clear trading plan, such as the one presented above. Making spontaneous trading decisions based on the current market situation is an initially losing strategy for an intraday trader.

Analyst InstaForex
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