09.12.202507:09 Forex Analysis & Reviews: How to Trade the GBP/USD Currency Pair on December 9? Simple Tips and Trade Analysis for Beginners

Trade Analysis for Monday:

1H Chart of the GBP/USD Pair

On Monday, the GBP/USD pair exhibited virtually no trading activity. The volatility of the British pound was even lower than that of the European currency. The price continued its insignificant decline toward the ascending trend line, and we consider the preservation of the upward trend for the British pound to be a positive sign – the trend for the euro may also recover. There were no reasons for the euro to decline on Monday, so we witnessed another illogical drop. This decline appears especially illogical ahead of the Federal Reserve meeting, where the rate will be cut for the third consecutive time. The U.S. dollar should be under pressure from the market now, not the other way around. Market makers may be attempting to confuse inexperienced traders again. There is a high probability that the breach of the trend line for the euro is false. The macroeconomic background in the UK and the U.S. was absent yesterday, as the market continues to await the Fed meeting.

5M Chart of the GBP/USD Pair

How to Trade on Tuesday:

On the hourly timeframe, the GBP/USD pair continues to form a local upward trend. As we mentioned, there are no global reasons for the dollar's medium-term growth, so we expect movements to be bullish. The correction/flat on the daily timeframe may not yet be complete, but any local upward trend on the hourly timeframe potentially signals a resumption of the global trend. The Fed meeting this week could significantly help form an upward trend.

On Tuesday, beginner traders can again expect trading signals to form in the area of 1.3319-1.3331. A consolidation above this area would allow for the opening of new long positions with a target at 1.3413. A consolidation below it would imply short positions with a target at 1.3259-1.3267. However, it is essential to remember that the current movements are extremely weak.

On the 5-minute timeframe, trading can be conducted at the following levels: 1.2913, 1.2980-1.2993, 1.3043, 1.3096-1.3107, 1.3203-1.3212, 1.3259-1.3267, 1.3319-1.3331, 1.3413-1.3421, 1.3466-1.3475, 1.3529-1.3543, 1.3574-1.3590. On Monday, no significant events are scheduled in the UK, but several U.S. reports are noteworthy. These include the ADP and JOLTs reports. The data from the JOLTs report can already be considered outdated, and the ADP report will present weekly rather than monthly statistics, rendering it relatively insignificant.

Key Rules of the Trading System:

1. The strength of a signal is assessed by the time it takes to form the signal (bounce or breakout). The less time it takes, the stronger the signal.
2. If two or more trades were opened near any level based on false signals, all subsequent signals from that level should be ignored.
3. In a flat, any pair can create numerous false signals or none at all. In any case, it's better to stop trading at the first signs of a flat.
4. Trades are opened during the period between the start of the European session and the middle of the American session, after which all trades must be closed manually.
5. On the hourly timeframe, when trading based on signals from the MACD indicator, it is preferable to trade only when good volatility is present, and a trend is confirmed by a trend line or channel.
6. If two levels are positioned too closely to each other (5 to 20 points), they should be viewed as a support or resistance area.
7. After moving 20 pips in the right direction, set the Stop Loss to breakeven.

Chart Explanation:

• Support and Resistance Levels: Levels that serve as targets for opening buys or sells. Take Profit levels can be placed near them.
• Red Lines: Channels or trend lines that reflect the current trend and indicate the preferred direction for trading.
• MACD Indicator (14, 22, 3): A histogram and signal line, a supplementary indicator that can also be used as a source of signals.

Important Note: Significant speeches and reports (always included in the news calendar) can greatly influence the movement of the currency pair. Therefore, during their release, it is advisable to trade cautiously or exit the market to avoid sharp reversals against the preceding movement.

Remember: For beginners trading in the Forex market, it is important to understand that not every trade can be profitable. Developing a clear strategy and practicing money management are keys to long-term trading success.