11.10.202411:54 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on October 11. Analysis of Yesterday's Forex Trades

Analysis of Trades and Tips for Trading the British Pound

The test of the 1.3064 price level occurred when the MACD indicator was just starting to move down from the zero line, confirming the right point to sell the pound in continuation of the downward trend—especially since the U.S. inflation data supported this decision. As a result, the pair dropped by 30 points. Buying on a technical rebound at the 1.3032 price level also resulted in a gain of around 25 points. Today, there is a lot of data from the UK, which could bring volatility, but only if the data diverges from economists' forecasts. If the UK's GDP growth, industrial production change, and trade balance meet expectations, the pair will likely remain in a sideways channel. There remains a potential for further decline. For intraday strategy, I will primarily focus on implementing scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound at the entry point near 1.3062 (green line on the chart). The target is to reach 1.3098 (thicker green line on the chart). Around 1.3098, I will exit the buy trades and open sell positions in the opposite direction, aiming for a movement of 30-35 points in the opposite direction from the level. A rise in the pound can be expected within the sideways channel. It is important to ensure that the MACD indicator is above the zero line and just starting to rise before making a purchase.

Scenario #2: I also plan to buy the pound today in case of two consecutive tests of the 1.3042 price level when the MACD indicator shows an oversold signal. This will limit the pair's downward potential and lead to a market reversal upward. A rise to the opposite levels of 1.3062 and 1.3098 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound today after a breakout of the 1.3042 level (red line on the chart), which will lead to a quick drop in the pair. The key target for sellers will be the 1.3011 level, where I will exit the sell trades and immediately open buy positions in the opposite direction, aiming for a movement of 20-25 points in the opposite direction from the level. Selling the pound can continue consistent with the bearish market trend. It is important to ensure that the MACD indicator is below the zero line and just starting to fall before selling.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the 1.3062 price level when the MACD indicator indicates an overbought condition. This will limit the pair's upward potential and lead to a market reversal downward. A drop to the opposite levels of 1.3042 and 1.3011 can be expected.

Chart Information:

• Thin green line – entry price for buying the trading instrument.
• Thick green line – suggested price for setting Take Profit or manually lock in 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 lock in profits, as further decline below this level is unlikely.
• MACD Indicator: It is important to use the overbought and oversold zones as guidance when entering the market.

Important: Beginner traders in the forex market should be very careful when making entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden price fluctuations. If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you could quickly lose your entire deposit, especially if you don't use proper money management practices and trade large volumes.

Remember, for successful trading, you need to have a clear trading plan, such as the one presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for an intraday trader.