02.10.202416:40 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on October 2 (U.S. Session)

Review of Trades and Trading Tips for the British Pound

The test of the 1.3296 level occurred when the MACD indicator had already moved significantly upward from the zero mark. This limited the pound's upward potential, especially after yesterday's sell-off. This is why I chose not to buy. We are awaiting the ADP employment change data for September in the U.S., and only significant deviations from forecasts are likely to either strengthen or weaken the pair, depending on whether the data significantly deviates from expectations. Additionally, pay attention to the speeches from Fed members Michelle Bowman and Thomas Barkin. Overall, the pound appears poised for further decline due to the ongoing tensions in the Middle East, which are seriously weighing on risk assets. Regarding the intraday strategy, I plan to act based on the implementation of Scenario 1 and Scenario 2.

Buy Signal

Scenario 1: Today, I plan to buy the pound when the price reaches around 1.3304 (green line on the chart), aiming for a rise to the 1.3339 level (thicker green line on the chart). At 1.3339, I will exit the market and open a sell position in the opposite direction, expecting a 30-35 point pullback from that level. A rise in the pound is expected today only if U.S. statistics disappoint. Important! Before buying, make sure the MACD indicator is above the zero mark and just starting to rise.

Scenario 2: I also plan to buy the pound today in case of two consecutive tests of the 1.3274 level, when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reversal upward. A rise toward the 1.3304 and 1.3339 levels can be expected.

Sell Signal

Scenario 1: I plan to sell the pound after a breakout of the 1.3274 level (red line on the chart), which should lead to a quick drop in the pair. The key target for sellers will be 1.3242. At that point, I will exit the market and immediately open buy positions in the opposite direction, aiming for a 20-25 point rebound. Sellers are expected to emerge if U.S. statistics come in strong. Important! Before selling, make sure the MACD indicator is below the zero mark and just starting to fall.

Scenario 2: I also plan to sell the pound today if there are two consecutive tests of the 1.3304 level, when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reversal downward. A drop toward the 1.3274 and 1.3242 levels can be expected.

Chart Explanation:

• Thin Green Line: The entry price at which the trading instrument can be bought.
• Thick Green Line: The expected price where Take Profit orders can be set, or profits can be manually secured, as further growth above this level is unlikely.
• Thin Red Line: The entry price at which the trading instrument can be sold.
• Thick Red Line: The expected price where Take Profit orders can be set, or profits can be manually secured, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it's important to consider the overbought and oversold zones.

Important Notice:

Beginner traders should be very cautious when making market entry decisions. It's best to stay out of the market before major fundamental reports to avoid getting caught in sharp price swings. If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without stop-losses, you can quickly lose your entire deposit. This is especially true if you don't implement proper risk management strategies and trade large volumes.

Additionally, successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is generally an unprofitable strategy for intraday traders.