06.06.202410:07 Forex Analysis & Reviews: GBP/USD: Simple trading tips for beginner traders on June 6th. Review of yesterday's forex trades

Analysis of transactions and tips on trading the British pound

The price test of 1.2782 came when the MACD indicator started rising from zero, which seemed like a suitable option to buy the pound. Unfortunately, after an increase of 10 points, the pressure on the pair returned. By the middle of the American session, there was a similar story with a level of 1.2762. The test, when the MACD began moving down from zero, combined with strong US data, suited the ideal selling scenario. Unfortunately, it never resulted in a significant downward movement. Yesterday's data on the PMI index for the UK services sector and the composite PMI index helped maintain demand for the British pound, preserving its chances of continuing the upward trend. There are no statistics for the UK today, so they will monitor developments in the eurozone and rely on market reaction and demand for risky assets after the ECB meeting, which may pull the British pound along with it. As for the intraday strategy, I will rely more 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 1.2806 (green line on the chart) to grow to 1.2845 (thicker green line on the chart). In the area of 1.2845, 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). It will be possible to count on the pound's growth today only after the positive reaction of the euro to the ECB meeting. 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 1.2785 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 1.2806 and 1.2845.

Sell signal

Scenario No. 1: I plan to sell the pound today after updating the level of 1.2785 (the red line on the chart), leading to a rapid decline in the pair. The key target of sellers will be the 1.2748 level, where I'm going to 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). It is possible to sell the pound only after an unsuccessful consolidation in the area of the daily maximum. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just beginning its decline.

Scenario No. 2: I also plan to sell the pound today in the case of two consecutive price tests of 1.2806 at a time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal of the market. We can expect a decline to the opposite levels of 1.2785 and 1.2748.

What's on the Chart:

Thin green line: entry price for buying the trading instrument.

Thick green line: suggested price for setting Take Profit or manually fixing profits, as further growth above this level is unlikely.

Thin red line: entry price for selling the trading instrument.

Thick red line: suggested price for setting Take Profit or manually fixing profits, as further decline below this level is unlikely.

MACD Indicator: Considering overbought and oversold zones when entering the market is important.

Important: Beginner Forex traders should be cautious when making market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden price swings. If you decide to trade during news releases, always set stop orders to minimize losses. You must set stop orders to avoid losing your entire deposit, especially if you do not use money management and trade with large volumes.

Successful trading requires a clear plan, such as the one presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.