FX.co ★ GBP/USD: Simple Trading Tips for Beginner Traders on October 10. Analysis of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the British Pound

The test of the 1.3079 price level occurred when the MACD indicator had moved significantly below the zero mark, which limited the pair's downward potential. For this reason, I did not sell the pound. I did not see any other entry points into the market. Statements from American policymakers pushed the pair towards the weekly low, but buyers successfully defended the 1.3059 level, preventing sellers from fully taking control. Once again, there is no significant economic data from the UK, and the lending conditions report is unlikely to draw much interest. This will likely impact market volume and volatility, keeping trading within the channel until important US data are released. Regarding the intraday strategy, I will mainly rely on Scenario #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound upon reaching the entry point around 1.3085 (green line on the chart) with a target of 1.3111 (thicker green line on the chart). Around the 1.3111 level, I plan to exit the buys and open sales in the opposite direction (targeting a move of 30-35 pips in the opposite direction from the level). Buying the pound can be considered within the horizontal channel. 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 1.3063 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 towards the opposite levels of 1.3085 and 1.3111 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound after breaking through the 1.3063 level (red line on the chart), which could lead to a rapid decline in the pair. The key target for sellers will be the 1.3041 level, where I plan to exit the sales and immediately open buys in the opposite direction (targeting a move of 20-25 pips in the opposite direction from the level). Selling the pound is possible as part of continuing the bearish market. 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 if there are two consecutive tests of the 1.3085 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 towards the opposite levels of 1.3063 and 1.3041 can be expected.

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.