FX.co ★ GBPUSD: Simple Trading Tips for Beginner Traders on October 29. Analysis of Yesterday's Forex Trades

Trade Analysis and Tips for Trading the British Pound

The test at the 1.2992 level occurred when the MACD indicator had moved significantly above the zero mark, limiting the pair's upward potential. For this reason, I refrained from buying the pound, which was the right decision. Following a sharp rise in the first half of the day, no buyers emerged at the highs, leading to today's correction. Upcoming data includes changes in the UK's M4 money supply, the number of approved mortgage applications, and net lending to individuals. Only robust data will help the pound continue its upward trend, which has been anticipated for some time. I'll focus on executing scenarios #1 and #2 for today's intraday strategy.

Buy Signal

Scenario #1: Today, I plan to buy the pound if it reaches the entry point around 1.2976 (green line on the chart) with a target level of 1.3034 (thicker green line on the chart). Around 1.3034, I'll exit purchases and open short positions in the opposite direction, aiming for a 30-35 pip movement from this level. Today, pound growth can be expected with a minor correction. Important! Before buying, make sure the MACD indicator is above the zero mark and just starting to rise.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.2957 level while 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 opposite levels of 1.2976 and 1.3034 can be expected.

Sell Signal

Scenario #1: Today, I plan to sell the pound after breaking below the 1.2957 level (red line on the chart), which will lead to a quick decline. The main target for sellers will be 1.2917, where I'll exit short positions and immediately buy in the opposite direction (targeting a 20-25 pip movement). Selling the pound is only advisable if buyers show weak activity near the daily high. Important! Before selling, make sure 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 1.2976 level while 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 opposite levels of 1.2957 and 1.2917 can be expected.

Chart Indicators:

Thin Green Line – Entry price to buy the instrument.

Thick Green Line – Suggested price level for setting Take Profit or manually taking profits, as further growth beyond this level is unlikely.

Thin Red Line – Entry price to sell the instrument.

Thick Red Line – Suggested price level for setting Take Profit or manually taking profits, as further decline beyond this level is unlikely.

MACD Indicator – When entering the market, consider overbought and oversold zones.

Important: Novice traders should exercise caution when entering the market. Before the release of significant fundamental reports, it is best to stay out of the market to avoid sudden price swings. If you choose to trade during news releases, always set stop orders to minimize losses. You may quickly lose your entire deposit without stop orders, especially if trading large volumes without proper money management.

Remember, successful trading requires a clear plan, like the above example. Spontaneous trading decisions based on current market conditions are inherently a losing strategy for an intraday trader.