FX.co ★ GBP/USD: Simple Trading Tips for Beginners on October 21. Analysis of Forex Deals

Analysis of Trades and Trading Tips for the British Pound

The test of the 1.3051 price level occurred when the MACD indicator was beginning to move upward from the zero mark, which, in the context of an upward correction, confirmed a proper entry point for buying the pound. As a result, the pair increased by 15 pips but failed to reach the target level of 1.3076. Strong data on retail sales growth, including fuel costs, in the UK for September spurred pound purchases, but the trend did not continue into the second half of the day. Today, there is no fundamental data for the UK, so trading will likely continue within the range established last Friday. However, remember that the downward trend for the pound is still intact, and the higher the pair rises, the more likely it is that major sellers will re-enter the market. I will focus more on implementing Scenarios #1 and #2 for intraday trading.

Buy Signal

Scenario #1: Today, I plan to buy the pound when the entry point reaches around 1.3059 (green line on the chart) with a target of 1.3088 (thicker green line on the chart). Around 1.3088, I plan to exit purchases and open sales in the opposite direction (aiming for a movement of 30-35 pips back from the level). Today's rise in the pound can be expected as part of the ongoing correction. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting its upward movement.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.3039 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 opposing levels of 1.3059 and 1.3088 can be expected.

Sell Signal

Scenario #1: Today, I plan to sell the pound after the 1.3039 level (red line on the chart) is breached, leading to a quick decline in the pair. The key target for sellers will be the 1.3011 level, where I plan to exit sales and immediately buy back in the opposite direction (aiming for a movement of 20-25 pips back from the level). Selling the pound is advisable if the bulls show weak activity at current highs. Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting its downward movement.

Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the 1.3059 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decline to the opposing levels of 1.3039 and 1.3011 can be expected.

What's on the chart:

Thin green line – the entry price to buy the trading instrument;

Thick green line – the approximate price to set Take Profit or manually lock in profits, as further growth above this level is unlikely;

Thin red line – the entry price to sell the trading instrument;

Thick red line – the approximate price to set Take Profit or manually lock in profits, as further declines below this level are unlikely;

MACD indicator – When entering the market, it's important to use overbought and oversold zones.

Important:

Novice traders in the Forex market should be cautious when making entry decisions. It's best to stay out of the market before the release of major fundamental reports to avoid sharp price 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 don't practice money management and trade with large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous decision-making based on the current market situation is a losing strategy for intraday traders.