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FX.co ★ GBP/USD: Simple Trading Tips for Beginners on October 22. Analysis of Yesterday's Forex Deals

GBP/USD: Simple Trading Tips for Beginners on October 22. Analysis of Yesterday's Forex Deals

Analysis of Deals and Trading Tips for the British Pound

The test of the 1.3010 price occurred when the MACD indicator was just starting to move downward from the zero mark, which, within the context of the downtrend, confirmed a valid entry point for selling the pound. As a result, the pair dropped to the target area of 1.2985, allowing a gain of about 25 pips from the market. Statements from U.S. Federal Reserve representatives were the primary reason for renewed pressure on risk assets, including the British pound. Today, there is no fundamental data from the UK, so buyers will likely try to correct the situation and buy the pound up toward the monthly lows. However, a speech by Bank of England Governor Andrew Bailey could present a significant obstacle, as the central bank's course could shift quickly, especially considering the latest data on inflation and unemployment, which would weaken the pound's position. I will focus on implementing Scenarios #1 and #2 for the intraday strategy.

GBP/USD: Simple Trading Tips for Beginners on October 22. Analysis of Yesterday's Forex Deals

Buy Signal

Scenario #1: Today, I plan to buy the pound when it reaches the entry point around 1.3007 (green line on the chart), targeting a rise to the 1.3043 level (thicker green line on the chart). At around 1.3043, I plan to exit the buy positions and open sell positions in the opposite direction (aiming for a movement of 30-35 pips in the opposite direction). Today's expected rise in the pound is possible only after Bailey's cautious statements. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting to rise.

Scenario #2: I also plan to buy the pound today in case of two consecutive tests of the 1.2976 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward reversal in the market. A rise to the opposite levels of 1.3007 and 1.3043 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound after breaking through the 1.2976 level (red line on the chart), which will lead to a quick drop in the pair. The key target for sellers will be the 1.2942 level, where I plan to exit the sell positions and immediately open buy positions in the opposite direction (aiming for a movement of 20-25 pips in the opposite direction). Selling the pound is advisable if the bulls show weak activity after the official's speech. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting to decline.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the 1.3007 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reversal in the market downward. A decline to the opposite levels of 1.2976 and 1.2942 can be expected.

GBP/USD: Simple Trading Tips for Beginners on October 22. Analysis of Yesterday's Forex Deals

What's on the Chart:

Thin Green Line: The entry price at which the trading instrument can be bought.

Thick Green Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further growth above this level is unlikely.

Thin Red Line: The entry price for selling the trading instrument.

Thick Red Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further declines below this level are unlikely.

MACD Indicator: Considering overbought and oversold zones is crucial when entering the market.

Important Note for Beginners:

Novice traders in the Forex market must be cautious when making market entry decisions. It is best to stay out of the market before the release of major fundamental reports to avoid getting caught in sharp price movements. 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 do not use money management and trade with large volumes.

And remember, successful trading requires a clear trading plan, like the one I've presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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