FX.co ★ GBP/USD: Simple Trading Tips for Novice Traders on October 9. Analysis of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the British Pound

The first test of the price at 1.3106 occurred when the MACD indicator had moved significantly above the zero mark, which limited the pair's upward potential. For this reason, I did not buy the pound. Shortly afterward, another test of 1.3106 occurred while the MACD was in the overbought area, confirming a correct entry point for selling according to Scenario #2. As a result, the pair dropped by more than 20 pips to the target level of 1.3086. It seems that today's trading will remain within the channel since there is no significant data from the UK or speeches from British policymakers. This will undoubtedly affect market volume and volatility. I will focus more on implementing Scenario #2 for the intraday strategy.

Buy Signal

Scenario #1: Today, I plan to buy the pound upon reaching the entry point around 1.3098 (green line on the chart) with a target of 1.3127 (thicker green line on the chart). Around 1.3127, I plan to exit purchases and open sales in the opposite direction (aiming for a move of 30-35 pips downward from this level). Consider growth in the pound only as part of a correction. 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 case the price at 1.3079 is tested twice consecutively while the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to a market reversal upwards. Expect growth to the opposite levels of 1.3098 and 1.3127.

Sell Signal

Scenario #1: I plan to sell the pound today after breaking below the 1.3079 level (red line on the chart), which will lead to a quick decline of the pair. The key target for sellers will be the 1.3053 level, where I plan to exit sales and immediately open purchases in the opposite direction (aiming for a move of 20-25 pips upward from this level). Selling the pound is possible in continuation of the bearish market. 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 case of two consecutive tests of the price at 1.3098 while the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a market reversal downward. Expect a decline to the opposite levels of 1.3079 and 1.3053.

What's on the Chart:

Thin Green Line: Entry price for buying the trading instrument.

Thick Green Line: Estimated price where Take Profit can be set or profits can be manually secured, as further growth above this level is unlikely.

Thin Red Line: Entry price for selling the trading instrument.

Thick Red Line: Estimated price where Take Profit can be set or profits can be manually secured, as further decline below this level is unlikely.

MACD Indicator: When entering the market, it's important to consider overbought and oversold zones.

Important: Novice traders in the forex market should carefully make entry decisions. It's best to stay out of the market before the release of significant fundamental reports to avoid being caught in sharp price swings. If you decide to trade during news releases, always set stop-loss orders to minimize losses. You can quickly lose your entire deposit without stop-loss orders, especially if you are trading large volumes without proper money management.

And remember, successful trading requires a clear trading plan, like the example provided above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for an intraday trader.