FX.co ★ GBPUSD: Simple Trading Tips for Beginner Traders on November 11. Review of Forex Deals

Trade Analysis and Tips for Trading the British Pound

The test of the 1.2971 level occurred when the MACD indicator had just started moving upward from the zero mark, confirming a good entry point for buying the pound. However, the price failed to rise, resulting in a loss. During the middle of the American session, the test of the 1.2943 level occurred when the MACD was far from the zero mark, so I decided not to sell the pound. A second test of 1.2943 shortly afterward, with the MACD in the oversold area, seemed like a suitable buying opportunity under Scenario #2, but GBP/USD failed to show growth again, leading to another loss.

Strong U.S. economic data and the consumer sentiment index supported dollar purchases, triggering a sell-off in the pound. No major data are scheduled for the first half of today, so the pair will likely continue its decline. For the intraday strategy, I will focus more on implementing Scenario #1 and Scenario #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound at 1.2928 (a green line on the chart) with a target at 1.2947 (a thicker green line on the chart). At 1.2947, I plan to exit long positions and open short positions, expecting a pullback of 30–35 pips from the entry point. Any pound growth today will likely be limited to a minor correction following the recent sell-off. 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 if there are two consecutive tests of the 1.2905 level while the MACD is in the oversold area. This will limit the pair's downward potential and lead to an upward reversal. Growth toward the opposite levels of 1.2928 and 1.2947 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound after breaking below the 1.2905 level (red line on the chart), likely leading to a quick decline. The key target for sellers will be 1.2870, where I plan to exit short positions and immediately open long positions, expecting a pullback of 20–25 pips. Selling the pound is preferable at higher levels. 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 if there are two consecutive tests of the 1.2928 level while the MACD is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal. A decline toward the opposite levels of 1.2905 and 1.2870 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.