01.10.202416:04 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on October 1 (U.S. Session)

Analysis of Trades and Tips for Trading the British Pound

The 1.3360 level was tested when the MACD indicator had just started moving down from the zero line, confirming a valid entry point for selling the pound. As a result, the pound fell to the target level of 1.3326, generating around 40 points of profit. The attempt to buy at the rebound from 1.3326, following Scenario #2, did not yield the desired outcome. The UK manufacturing data matched economists' forecasts, which was insufficient to support demand for the pound. Upcoming events include the U.S. ISM Manufacturing Index and the Job Openings and Labor Turnover data from the U.S. Bureau of Labor Statistics for September, as well as speeches by FOMC members Raphael Bostic and Lisa D. Cook. If U.S. statistics are strong, it's better to continue betting on the pair's downward trend. Regarding the intraday strategy, I plan to act based on Scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound when it reaches the entry point around 1.3338 (green line on the chart), targeting a rise to the 1.3371 level (thicker green line on the chart). At 1.3371, I will exit my long positions and open short positions in the opposite direction (aiming for a 30-35 point movement in the opposite direction from the level). The pound is expected to rise today if weak U.S. statistics are released. Important: Ensure that the MACD indicator is above the zero line and just starting to rise before buying.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.3306 price level, when the MACD indicator is in the oversold area. This should limit the pair's downward potential and lead to a market reversal upward. You can expect a rise toward the target levels of 1.3338 and 1.3371.

Sell Signal

Scenario #1: I plan to sell the pound today after breaking the 1.3306 level (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the 1.3275 level, where I will exit my short positions and immediately open long positions in the opposite direction (aiming for a 20-25 point movement in the opposite direction from the level). Sellers will be active if strong U.S. statistics are released. Important: Ensure that the MACD indicator is below the zero line and just starting its decline before selling.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the 1.3338 price level, when the MACD indicator is in the overbought area. This should limit the pair's upward potential and lead to a market reversal downward. You can expect a decline toward the target levels of 1.3306 and 1.3275.

What's on the Chart:

• Thin green line – the entry price for buying the trading instrument.
• Thick green line – the estimated price where you can set Take Profit or lock in profits yourself, as further growth above this level is unlikely.
• Thin red line – the entry price for selling the trading instrument.
• Thick red line – the estimated price where you can set Take Profit or lock in profits yourself, as further decline below this level is unlikely.
• MACD Indicator: It's important to consider overbought and oversold zones when entering the market.

Important: Beginner forex traders should make market entry decisions with extreme caution. It's best to stay out of the market before the release of important fundamental reports to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

And remember, for successful trading, it's essential to have a clear trading plan, like the one presented above. Making impulsive trading decisions based on the current market situation is inherently a losing strategy for intraday traders.