empty
07.05.2025 07:44 PM
GBP/USD: Simple Trading Tips for Beginner Traders on May 7th (U.S. Session)

Trade Analysis and Guidance for the British Pound

The price test at 1.3341 in the first half of the day occurred just as the MACD indicator began to move downward from the zero line, confirming a valid entry point for selling the pound. As a result, the pair declined by 20 points, after which market pressure subsided.

The UK construction PMI data offered no positive surprises. Uncertainty about the outlook for the British economy continues to weigh on the national currency, prompting investors to act cautiously. Weak performance in the construction sector—traditionally a bellwether for overall economic health—undermines hopes for a quick recovery.

In the near term, the pound's dynamics will depend on a range of factors, including macroeconomic data releases, statements from Bank of England officials, and decisions from the U.S. Federal Reserve. The second half of the day will focus on precisely that.

The FOMC's decision on the benchmark interest rate, its accompanying statement, and Jerome Powell's press conference are the key events ahead. The regulator is expected to leave rates unchanged. Still, even if the rate remains steady, investor attention will be focused on the tone of the statements and Powell's commentary. Markets will be looking for hints about the future path of monetary policy, especially in light of persistent inflation and a slowing, yet still strong, labor market. Any deviation from expectations could spark volatility in currency and stock markets.

As for the intraday strategy, I will mainly rely on the implementation of Scenarios #1 and #2.

This image is no longer relevant

Buy Signal

Scenario #1: I plan to buy the pound today when the entry point near 1.3359 (green line on the chart) is reached, targeting a rise to 1.3391 (thicker green line on the chart). Around 1.3391, I'll exit long positions and open shorts in the opposite direction (expecting a 30–35 point retracement). Pound strength today can only be expected after weak U.S. data. Important! Before buying, make sure the MACD indicator is above the zero line and just beginning to rise.

Scenario #2: I also plan to buy the pound today if the price at 1.3339 is tested twice in a row while the MACD is in oversold territory. This would limit the pair's downward potential and result in a bullish market reversal. A move toward the opposite levels of 1.3359 and 1.3391 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound today after a break below 1.3339 (red line on the chart), which would lead to a rapid drop in the pair. Sellers' key target will be 1.3310, where I will exit short positions and immediately enter long positions in the opposite direction (expecting a 20–25 point retracement). Sellers will show up if the Fed adopts a dovish stance. Important! Before selling, make sure the MACD is below the zero line and just beginning to decline.

Scenario #2: I also plan to sell the pound today if the price at 1.3359 is tested twice in a row while the MACD is in overbought territory. This would limit the pair's upward potential and result in a downward market reversal. A move toward the opposite levels of 1.3339 and 1.3310 can be expected.

This image is no longer relevant

What's on the chart:

  • Thin green line – entry price at which to buy the trading instrument
  • Thick green line – estimated level to place Take Profit or manually close positions, as further growth above this level is unlikely
  • Thin red line – entry price at which to sell the trading instrument
  • Thick red line – estimated level to place Take Profit or manually close positions, as further decline below this level is unlikely
  • MACD Indicator – when entering the market, use overbought and oversold zones for confirmation

Important: Beginner Forex traders must make entry decisions with great caution. It's best to stay out of the market before the release of major fundamental reports to avoid sudden price swings. If you choose to trade during news events, always set stop-loss orders to minimize losses. Without stop-losses, you could lose your entire deposit quickly, especially if you don't use money management and trade large volumes.

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

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Why $65 for Brent Is Just the Calm Before the Storm

Brent is struggling to stay afloat, even as looming strikes on Iran and new turns in U.S. sanctions diplomacy come into view. Meanwhile, natural gas is currently in a bind

Anna Zotova 01:31 2025-05-15 UTC+2

Oil Lacks Confidence to Sustain a Rally

The oil market has come back to life: since the beginning of last week, Brent has gained more than 12%, and this momentum is driven not just by noise

Anna Zotova 00:21 2025-05-14 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on May 9th (U.S. Session)

Trade Review and Guidance on Trading the Japanese Yen The test of the 145.31 level occurred when the MACD indicator had already moved significantly below the zero mark, which limited

Jakub Novak 19:13 2025-05-09 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on May 9th (U.S. Session)

Trade Analysis and Tips for the British Pound The test of the 1.3255 level during the first half of the day occurred when the MACD indicator had already moved significantly

Jakub Novak 19:10 2025-05-09 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on May 9th (U.S. Session)

Trade Analysis and Tips for the Euro The test of the 1.1244 price level occurred when the MACD indicator had already risen significantly above the zero mark, which limited

Jakub Novak 19:08 2025-05-09 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on May 9. Review of Yesterday's Forex Trades

The test of the 144.86 level occurred when the MACD indicator had just started to move upward from the zero line, confirming a valid entry point for buying the dollar

Jakub Novak 09:44 2025-05-09 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on May 9. Review of Yesterday's Forex Trades

The test of the 1.3342 level in the second half of the day occurred when the MACD indicator had already significantly moved above the zero line, which limited the pair's

Jakub Novak 09:44 2025-05-09 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on May 9. Review of Yesterday's Forex Trades

The price test at 1.1312 in the second half of the day coincided with the MACD indicator having already moved significantly above the zero line, which limited the pair's upward

Jakub Novak 09:44 2025-05-09 UTC+2

Intraday Strategies for Beginner Traders on May 9

The euro and the pound resumed their decline immediately after confidence in the U.S. reaching trade agreements with key partners increased in the market. Following signing a trade agreement with

Miroslaw Bawulski 07:53 2025-05-09 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders – May 8th (U.S. Session)

Trade Review and Tips for Trading the Japanese Yen The price test at 143.75 in the first half of the day coincided with the MACD indicator just starting to rise

Jakub Novak 19:30 2025-05-08 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.