05.11.202409:02 Forex Analysis & Reviews: GBPUSD: Simple Trading Tips for Beginner Traders on November 5. Review of Yesterday's Forex Deals

Trade Analysis and Tips for Trading the British Pound

The test of the 1.2986 level occurred when the MACD indicator had already moved significantly upward from the zero mark, which limited the pair's upward potential. For this reason, I did not buy the pound. A short time later, there was another test of 1.2986, with the MACD in the overbought area, allowing for scenario #2 on selling. As a result, the pair dropped by more than 40 pips. Today, the focus will be on the U.S. presidential election, but don't forget about fundamental data. The UK is expected to release the PMI for the services sector and the composite PMI. If the figures are revised upwards for October, the pound may continue to recover. Otherwise, trading may shift into a horizontal channel. I will primarily rely on implementing scenarios #1 and #2 for the intraday strategy.

Buy Signal

Scenario #1: Today, I plan to buy the pound upon reaching the entry point around 1.2974 (green line on the chart) with a target of rising to 1.3012 (a thicker green line on the chart). Around 1.3012, I plan to exit the buy position and open a sell position in the opposite direction, aiming for a move of 30-35 pips from the entry level. Further pound growth is possible today, especially with strong PMI indices. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.2947 level while the MACD indicator is in the oversold area. This will limit the pair's downward potential and trigger an upward market reversal. A rise toward the opposite levels of 1.2974 and 1.3012 can be expected.

Sell Signal

Scenario #1: Today, I plan to sell the pound after breaking below the 1.2947 level (red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be 1.2909, where I plan to exit the sell position and immediately open a buy position in the opposite direction, aiming for a move of 20-25 pips from the entry level. Selling the pound is advisable only if there is weak buyer activity around the daily high. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline.

Scenario #2: I also plan to sell the pound today in the case of two consecutive tests of the 1.2974 level while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A drop toward the opposite levels of 1.2947 and 1.2909 can be expected.

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.