03.10.202409:12 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Novice Traders on October 3. Analysis of Yesterday's Forex Trades

Trade Analysis and Tips for Trading the British Pound

The test of the 1.3274 price level occurred when the MACD indicator had moved significantly below the zero mark, limiting the pair's downward potential. For this reason, I did not sell the pound. Shortly after, there was another test of 1.3274, this time with the MACD in oversold territory, leading to the implementation of scenario #2 for buying. However, due to the strong ADP labor market report from the U.S., the pound did not rise, resulting in losses being locked in. Today, buyers are pinning their hopes on the PMI for the UK services sector. Only strong results could boost the composite PMI index, which would strengthen the British pound. Otherwise, it's better to focus on selling GBP/USD based on the newly forming downward trend. Regarding intraday strategy, I will rely more on implementing scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound when reaching the entry point at 1.3200 (green line on the chart), aiming for a rise to the level of 1.3243 (thicker green line on the chart). At 1.3243, I plan to exit the buy trades and open sell trades in the opposite direction, expecting a movement of 30-35 pips in the opposite direction from the level. The pound's rise is possible, but positive news is required. 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 today in the case of two consecutive tests of the 1.3165 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. A rise to the opposite levels of 1.3200 and 1.3243 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound after the 1.3165 level (red line on the chart) is tested, which will lead to a quick decline in the pair. The key target for sellers will be the 1.3108 level, where I plan to exit the sell trades and immediately open buy trades in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from this level). Selling the pound is possible as part of continuing the bearish market. Important! Before selling, make sure the MACD indicator is below the zero mark and just starting to decline.

Scenario #2: I also plan to sell the pound today in the case of two consecutive tests of the 1.3200 price 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. A decline to the opposite levels of 1.3165 and 1.3108 can be expected.

What's on the Chart:

Thin green line: Entry price at which you can buy the trading instrument.

Thick green line: The anticipated price where you can set Take Profit or manually lock in profits, as further growth above this level is unlikely.

Thin red line: Entry price at which you can sell the trading instrument.

Thick red line: The anticipated price where you can set Take Profit or manually lock in profits, as further decline below this level is unlikely.

MACD Indicator: When entering the market, it is important to be guided by overbought and oversold zones.

Important: Novice traders in the forex market should be cautious when making market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden exchange rate fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. You can quickly lose your entire deposit without stop orders, especially if you do not use money management and trade in large volumes.

And remember, for successful trading, you need to have a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.