06.08.202608:41 Forex Analysis & Reviews: GBPUSD: Simple Trading Tips for Beginner Traders for August 6. Review of Yesterday's Forex Trades

Review of Trades and Tips for Trading the British pound

The price test at 1.3468 occurred when the MACD indicator had moved well above the zero mark, limiting the pair's upside potential. For this reason, I did not buy the pound.

Yesterday, the pound rose amid news that the modest ADP report, showing an increase of 44,000 new jobs, pointed to a slowdown in hiring and limited the strengthening of the US currency. Today, the pound enters the first half of the day eyeing the publication of the UK construction sector PMI, which threatens to add pressure on the British currency. The construction PMI is a leading indicator that shows whether the industry is expanding or contracting, and, through its impact on the overall state of the economy, it also affects expectations for Bank of England policy. Given that the situation in the sector is currently rather difficult, the market is already positioned for weak figures. If the report confirms these concerns, the pound risks falling further, since another signal of problems in construction will undermine confidence in the economy's resilience. Nevertheless, the weight of this indicator is limited, and without support from more significant data, the reaction may remain moderate.

As for the intraday strategy, I will mainly rely on Scenarios No. 1 and No. 2.

Buying Scenarios

Scenario No. 1: I plan to buy the pound today at the entry point around 1.3465 (green line on the chart), with a target of 1.3485 (thicker green line on the chart). Around 1.3485, I intend to exit long positions and open short positions in the opposite direction (expecting a 30–35 pip move in the opposite direction from that level). Expect pound appreciation today only after good data. Important! Before buying, make sure the MACD indicator is above the zero mark and is just starting its rise from it.

Scenario No. 2: I also plan to buy the pound today in the event of two consecutive tests of the 1.3455 price when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to a reversal of the market upward. One can expect a rise to the corresponding levels of 1.3465 and 1.3485.

Selling Scenarios

Scenario No. 1: I plan to sell the pound today after a break of the 1.3455 level (red line on the chart), which will lead to a rapid decline in the pair. The sellers' key target will be 1.3438, where I plan to exit shorts and immediately open longs in the opposite direction (expecting a 20–25 pip move in the opposite direction from that level). Bad news will return pressure on the pound. Important! Before selling, make sure the MACD indicator is below the zero mark and is just beginning its decline from it.

Scenario No. 2: I also plan to sell the pound today in the event of two consecutive tests of the 1.3465 price when the MACD indicator is in the overbought area. This will limit the pair's upside potential and lead to a downward reversal in the market. One can expect a decline to the corresponding levels of 1.3455 and 1.3438.

What the Chart Shows:

• Thin green line – entry price for buying the trading instrument;
• Thick green line – estimated price where take profit can be set, or profit can be realized, as further growth above this level is unlikely;
• Thin red line – entry price for selling the trading instrument;
• Thick red line – estimated price where take profit can be set, or profit can be realized, 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 forex traders need to make entry decisions very cautiously. Before key fundamental reports are released, it is best to stay out of the market to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without placing stop orders, you can quickly lose your entire deposit, especially if you do not practice money management and trade large volumes.

And remember, successful trading requires a clear trading plan, as outlined above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for intraday traders.