14.10.202413:57 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on October 14th. Review of Yesterday's Forex Trades

Trade Analysis and Tips for Trading the British Pound

The price test at 1.3075 occurred when the MACD indicator had already moved significantly upward from the zero line, which limited the pair's upward potential. Shortly afterward, there was another test of 1.3075, this time with the MACD in the overbought zone. This allowed Scenario #2 for selling to play out. As a result, the pair fell by 10 points, and the movement ended there. The UK GDP data matched economists' forecasts. The only benefit for buyers was the improvement in industrial production. Today, apart from a speech by MPC member Swati Dhingra from the Bank of England, nothing significant is expected, so the pound doesn't have much to rely on. In this context, I expect GBP/USD to remain within its current sideways channel. Regarding intraday strategy, I will focus more on implementing Scenario #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound if the price reaches the area of 1.3077 (green line on the chart), aiming for a rise to the level of 1.3105 (thicker green line on the chart). At the 1.3105 level, I will close the long positions and open short positions in the opposite direction, aiming for a 30-35 point move from this level. We are unlikely to see strong growth in the pound today. Important: Before buying, ensure that the MACD indicator is above the zero line and has just started to rise from it.

Scenario #2: I also plan to buy the pound today in the case of two consecutive tests of the 1.3055 price, with the MACD indicator in the oversold zone. This will limit the pair's downward potential and lead to an upward market reversal. A rise to the opposite levels of 1.3077 and 1.3105 is expected.

Sell Signal

Scenario #1: I plan to sell the pound today after the price breaks below the 1.3055 level (red line on the chart), which will likely lead to a quick decline in the pair. The key target for sellers will be the 1.3023 level, where I plan to close the short positions and immediately open long positions in the opposite direction, aiming for a 20-25 point move from this level. Selling the pound can continue in line with the bearish market. Important: Before selling, ensure that the MACD indicator is below the zero line and has just started to decline from it.

Scenario #2: I also plan to sell the pound today in the case of two consecutive tests of the 1.3077 price, with the MACD indicator in the overbought zone. This will limit the pair's upward potential and lead to a downward market reversal. A decline to the opposite levels of 1.3055 and 1.3023 is expected.

Chart Explanations:

• Thin green line: The entry price where you can buy the trading instrument;
• Thick green line: The suggested price where you can set Take Profit or manually secure profits, as further growth beyond this level is unlikely;
• Thin red line: The entry price where you can sell the trading instrument;
• Thick red line: The suggested price where you can set Take Profit or manually secure profits, as further decline below this level is unlikely;
• MACD indicator: When entering the market, it's important to consider overbought and oversold zones.

Important Note:Beginner traders in the forex market should exercise great caution when deciding to enter the market. It's advisable to stay out of the market before the release of important fundamental reports to avoid being caught in sharp price fluctuations. If you decide to trade during news releases, always place stop-loss orders to minimize losses. Without placing stop-loss orders, you could quickly lose your entire deposit, especially if you trade large volumes without proper money management.

And 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 typically a losing strategy for intraday traders.