13.11.202409:06 Forex Analysis & Reviews: GBPUSD: Simple Trading Tips for Beginner Traders on November 13. Review of Yesterday's Forex Trades

Trade Analysis and Tips for Trading the British Pound

The test of the 1.2802 level occurred when the MACD indicator had just started moving down from the zero mark, confirming the correct entry point for selling the pound. As a result, the pair fell by over 35 pips, breaking below the target mark of 1.2765. Weak reports on rising unemployment and an increase in jobless claims in the UK triggered pound sales in the first half of the day. Today, there are no significant data releases, so the focus will shift to the speech by Catherine L. Mann, a Bank of England's Monetary Policy Committee member. Her comments on yesterday's labor market data will be timely and could pose additional challenges for pound buyers, already scarce in the market. My intraday strategy will mainly rely on implementing Scenarios 1 and 2.

Buy Signal

Scenario 1:

Today, I plan to buy the pound if the price reaches the entry point at 1.2756 (green line on the chart), aiming for growth to 1.2788 (thicker green line). At 1.2788, I plan to exit purchases and open sales in the opposite direction, targeting a movement of 30-35 pips from the level. However, it's unlikely that the pound will show significant growth today. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario 2:

I also plan to buy the pound today in the event of two consecutive tests of the 1.2731 level when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to an upward market reversal. Expected targets are 1.2756 and 1.2788.

Sell Signal

Scenario 1:

I plan to sell the pound after the price breaks below 1.2731 (red line on the chart), leading to a quick drop in the pair. The key target for sellers will be 1.2705, where I will exit sales and immediately open purchases in the opposite direction, targeting a movement of 20-25 pips from the level. It's best to sell the pound at higher levels. Important! Before selling, ensure the MACD indicator is below the zero mark and starting to decline.

Scenario 2:

I also plan to sell the pound today in the event of two consecutive tests of the 1.2756 level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a downward market reversal. Expected targets are 1.2731 and 1.2705.

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.