24.05.202417:39 Forex Analysis & Reviews: GBP/USD: Simple trading tips for novice traders on May 24th (US session)

Analysis of transactions and tips on trading the British pound

The price test of 1.2701 came when the MACD indicator went up a lot from zero, which limited the further growth of the pound, so I did not buy and stayed out of the market. The UK data did not lead to serious changes in the market; now, all attention is on American statistics. Figures are expected on changes in the volume of orders for durable goods, the consumer sentiment index from the University of Michigan, and inflation expectations. Weak reports will lead to a new wave of pound growth at the end of the week. Personally, buyers will not be able to show something serious, so it's better to count on purchases at a lower price and more attractive prices. As for the intraday strategy, I plan to act based on implementing scenarios No. 1 and No. 2.

Buy signal

Scenario No. 1: I plan to buy the pound today when I reach the entry point in the area of 1.2736 (green line on the chart) to grow to 1.2775 (thicker green line). In the area of 1.2775, I will exit purchases and open sales in the opposite direction (counting on a movement of 30-35 points in the opposite direction from the level). Today's pound growth can be counted on only after very weak data on the United States in the continuation of the development of the morning upward trend. Important! Before buying, ensure the MACD indicator is above the zero mark and is just starting to grow from it.

Scenario No. 2: I also plan to buy the pound today in the case of two consecutive price tests of 1.2704 at a time when the MACD indicator will be in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. We can expect an increase to the opposite levels of 1.2736 and 1.2775.

A sell signal

Scenario No. 1: I plan to sell the pound today after updating the level of 1.2704 (the red line on the chart), leading to a rapid decline in the pair. The key target of sellers will be the 1.2679 level, where I will exit sales and immediately open purchases in the opposite direction (counting on a movement of 20-25 points in the opposite direction from the level). Sellers will prove themselves in case of good data for the USA. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting to fall from it.

Scenario No. 2: I also plan to sell the pound today in the case of two consecutive price tests of 1.2736 at a time when the MACD indicator will be in the overbought area. This will limit the pair's upward potential and lead to a reverse downward market reversal. We can expect a decline to the opposite levels of 1.2704 and 1.2679.

What's on the chart:

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

The thick green line is the estimated price where you can place Take profit or fix profits yourself, since further growth is unlikely above this level.

The thin red line is the entry price at which a trading instrument can be sold.

The thick red line is the estimated price where you can place Take profit or fix profits yourself since further decline is unlikely below this level.

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

Important. Novice forex traders need to make decisions about entering the market very carefully. Before releasing important fundamental reports, it is best to stay out of the market to avoid sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place stop orders to minimize losses. You need to place stop orders to avoid losing the entire deposit quickly, especially if you do not use money management but trade in large volumes.

Remember that for successful trading, you need a clear trading plan, following the example I presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.