You are here: Home > articles > Forex > Trading plan for GBP/USD on June 16. Simple tips for beginners
Trading plan for GBP/USD on June 16. Simple tips for beginners
June 16, 2023 3:24 amVideo
Latest News
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
- Week Ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
Analyzing Thursday’s trades:
GBP/USD on 30M chart
GBP/USD accelerated on Thursday, which seems unstoppable. Despite significant reasons for buying the British pound this week, its overall growth still appears strange and illogical. For example, the pound reacted to the “hawkish” outcomes of the European Central Bank meeting and rather mediocre US data. This growth may seem justified if we overlook the fact that the pound also tends to rise without clear reasons in most cases. It has gained about 2400 pips against the dollar in the past 10 months, with the maximum correction during this period being only 600 pips. Perhaps the British currency is rising in anticipation of next week’s Bank of England meeting, but it is difficult to say what exactly traders are so enthusiastically waiting for when they’re already aware of the rate hike. The British central bank has never hinted at a pause or the end of the tightening cycle.
GBP/USD on 5M chart
The trading signals on the 5-minute chart were not ideal. The trend only started during the US trading session, while the pair traded quite sluggishly in the morning. Therefore, it is difficult to characterize the first signal around the 1.2659 level. Beginners could have opened short positions at that time, but it was better not to take risks as the signal was very imprecise, and the 1.2659 level was removed from the charts by the end of the day. The next buy signal around the same level was slightly better, so you could have executed this signal using a long position. Later, the pair broke through 1.2698 and grew by about 40 pips. Therefore, the long position could have been manually closed closer to the evening without waiting for a sell signal.
Trading tips on Friday:
On the 30-minute chart, the GBP/USD pair continues its short-term uptrend. The pound had a logical reason behind its growth on Thursday, but it clearly doesn’t need any as it continues to rally. There is no point in discussing any logic in the movements right now, as the pound remains heavily overbought. The key levels on the 5M chart are 1.2372, 1.2457, 1.2499, 1.2538, 1.2597, 1.2629, 1.2698, 1.2772, 1.2860. When the price moves in the right direction by 20 pips after opening a trade, a stop loss can be set at breakeven. There are no important events lined up in the UK, while the US will release the University of Michigan Consumer Sentiment Index. Therefore, traders will have little to react to during the day.
Basic trading rules:
1) The strength of the signal depends on the time period during which the signal was formed (a rebound or a break). The shorter this period, the stronger the signal.
2) If two or more trades were opened at some level following false signals, i.e. those signals that did not lead the price to Take Profit level or the nearest target levels, then any consequent signals near this level should be ignored.
3) During the flat trend, any currency pair may form a lot of false signals or do not produce any signals at all. In any case, the flat trend is not the best condition for trading.
4) Trades are opened in the time period between the beginning of the European session and until the middle of the American one when all deals should be closed manually.
5) We can pay attention to the MACD signals in the 30M time frame only if there is good volatility and a definite trend confirmed by a trend line or a trend channel.
6) If two key levels are too close to each other (about 5-15 pips), then this is a support or resistance area.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines are channels or trend lines that display the current trend and show which direction is better to trade.
MACD indicator (14,22,3) is a histogram and a signal line showing when it is better to enter the market when they cross. This indicator is better to be used in combination with trend channels or trend lines.
Important speeches and reports that are always reflected in the economic calendars can greatly influence the movement of a currency pair. Therefore, during such events, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement.
Beginners should remember that every trade cannot be profitable. The development of a reliable strategy and money management are the key to success in trading over a long period of time.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: