FX.co ★ GBP/USD: Simple Trading Tips for Beginner Traders on October 23rd (U.S. Session)

Analysis of Trades and Advice on Trading the British Pound

The first test of the 1.2969 price coincided with the MACD indicator being significantly below the zero line, which limited the pair's downward potential. For this reason, I refrained from selling. The second test of this price soon coincided with the MACD entering the oversold zone and gradually recovering, allowing the realization of Scenario No. 2 for buying the pair. As a result, there was a 15-point rise, after which the movement ended. FOMC members Thomas Barkin and Michelle Bowman will deliver speeches today, which may influence market movements, as the release of the Fed's Beige Book report typically has a limited impact on the currency market. Restrained statements from policymakers may push the pound toward new lows. As for the intraday strategy, I will focus more on implementing Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, I plan to buy the pound upon reaching an entry point around 1.2975 (green line on the chart) with a target of rising to 1.3021 (thicker green line on the chart). At 1.3021, I will close buy positions and open shorts, targeting a reversal of 30-35 points from this level. The pound's rise today can only be expected within a correction. Note: Before buying, ensure the MACD indicator is above the zero mark and just starting to rise.

Scenario No. 2: I also plan to buy the pound today if there are two consecutive tests of the 1.2946 price when the MACD indicator is in the oversold area. This will reduce the pair's downward momentum and lead to an upward market reversal. A rise to the opposite levels of 1.2975 and 1.3021 can be expected.

Sell Signal

Scenario No. 1: I plan to sell the pound today after the level 1.2946 (red line on the chart) is reached, which will lead to a quick decline of the pair. The key target for sellers will be the 1.2908 level, where I will exit sales and immediately open purchases in the opposite direction, targeting a reversal of 20-25 points from this level. Sellers will assert themselves if the Fed representatives maintain a firm stance. Note: Before selling, ensure the MACD indicator is below the zero mark and just starting its decline.

Scenario No. 2: I also plan to sell the pound today if there are two consecutive tests of the 1.2975 price when the MACD indicator is in the overbought area. This will curb the pair's upward momentum, triggering a downward market reversal. A decline to the opposite levels of 1.2946 and 1.2908 can be expected.

What is on the Chart:

• Thin green line – the entry price for buying the trading instrument.
• Thick green line – estimated price for setting Take Profit or manually closing positions, as further growth above this level is unlikely.
• Thin red line – the entry price for selling the trading instrument.
• Thick red line – estimated price for setting Take Profit or manually closing positions, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it's important to focus on overbought and oversold zones.

Important: Beginner forex traders should be very cautious when making decisions about entering the market. It is best to avoid trading before important fundamental reports are released to avoid being caught in sharp exchange rate fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

Remember, successful trading requires having a clear trading plan. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.