31.10.202409:04 Forex Analysis & Reviews: GBPUSD: Simple Trading Tips for Beginner Traders on October 31. Analysis of Yesterday's Forex Trades

Trade Analysis and Tips for Trading the British Pound

The price test of 1.2959 occurred when the MACD indicator moved significantly below the zero mark, limiting the pair's downward potential. For this reason, I did not sell the pound. After the disappointing U.S. GDP data, the pound rose. The test of 1.2984 aligned with the MACD indicator's initial move upward from the zero mark, confirming a good entry point for buying the pound. This resulted in the pair moving up toward the target level of 1.3030. Today, there is no data from the UK, so a substantial rise in GBP/USD is unlikely. At best, trading is expected to continue within a wide horizontal channel. For the intraday strategy, I will primarily rely on the implementation of Scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound at the entry point around 1.2965 (green line on the chart) with a target of 1.2990 (thicker green line on the chart). Around 1.2990, I plan to exit purchases and open sell positions in the opposite direction (aiming for a 30-35 pip move in the opposite direction from the level). Pound growth today is only expected within a modest upward correction. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: I also plan to buy the pound if there are two consecutive tests of the 1.2941 level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. Expect a rise to the opposite levels of 1.2965 and 1.2990.

Sell Signal

Scenario #1: Today, I plan to sell the pound after breaking below 1.2941 (red line on the chart), which would lead to a rapid decline in the pair. The primary target for sellers will be 1.2908, where I plan to exit sales and immediately open purchases in the opposite direction (aiming for a 20-25 pip move in the opposite direction from the level). Selling the pound is only advisable if there is weak buyer activity around the daily high. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting to fall from it.

Scenario #2: I also plan to sell the pound if there are two consecutive tests of the 1.2965 level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. Expect a decline to the opposite levels of 1.2941 and 1.2908.

Chart Indicators:

Thin Green Line – Entry price to buy the instrument.

Thick Green Line – Suggested price level for setting Take Profit or manually taking profits, as further growth beyond this level is unlikely.

Thin Red Line – Entry price to sell the instrument.

Thick Red Line – Suggested price level for setting Take Profit or manually taking profits, as further decline beyond this level is unlikely.

MACD Indicator – When entering the market, consider overbought and oversold zones.

Important: Novice traders should exercise caution when entering the market. Before the release of significant fundamental reports, it is best to stay out of the market to avoid sudden price swings. If you choose to trade during news releases, always set stop orders to minimize losses. You may quickly lose your entire deposit without stop orders, especially if trading large volumes without proper money management.

Remember, successful trading requires a clear plan, like the above example. Spontaneous trading decisions based on current market conditions are inherently a losing strategy for an intraday trader.