06.11.202413:34 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on November 6th (U.S. Session)

Analysis of Trades and Trading Advice for the British Pound

At the 1.2911 price level, the MACD indicator rose significantly above the zero mark, limiting the pair's upward potential. For this reason, I avoided buying the pound and waited for Scenario #2 to materialize for selling. Shortly afterward, a second test occurred while the MACD was in the overbought zone, presenting an ideal opportunity for a buy, which I executed. Following poor UK data and a weak PMI Construction Index, the pound fell by over 30 points. At the time of writing, pressure on the pair persists. While there is no US data expected this afternoon, Trump's election victory continues to strengthen the dollar. I anticipate further declines in the pound, especially with the Bank of England expected to lower interest rates tomorrow. For the intraday strategy, I will focus on Scenarios #1 and #2.

Buy SignalScenario #1:I plan to buy the pound today if the price reaches the 1.2911 level (green line on the chart), targeting a rise to 1.2969 (thicker green line on the chart). Near 1.2969, I will exit long positions and open short positions in the opposite direction, expecting a 30–35 point downward move. A significant rise in the pound today is unlikely.Important: Ensure that the MACD indicator is above the zero mark and beginning to rise before buying.

Scenario #2:I also plan to buy the pound if there are two consecutive tests of the 1.2880 level while the MACD indicator is in the oversold zone. This setup should limit the pair's downward potential and trigger an upward market reversal. Gains can be expected to target levels at 1.2911 and 1.2969.

Sell SignalScenario #1:I plan to sell the pound today if the 1.2880 level (red line on the chart) is breached, triggering a rapid decline in the pair. The key target for sellers will be the 1.2819 level, where I will exit short positions and open long positions in the opposite direction, expecting a 20–25 point upward move. Sellers are expected to capitalize on any strong correction.Important: Ensure that the MACD indicator is below the zero mark and beginning to fall before selling.

Scenario #2:I also plan to sell the pound if there are two consecutive tests of the 1.2911 level while the MACD indicator is in the overbought zone. This setup should limit the pair's upward potential and trigger a downward market reversal. Declines can be expected to target levels at 1.2880 and 1.2819.

Chart Details:

• Thin green line: Entry price for buying.
• Thick green line: Suggested Take Profit level, as further growth beyond this point is unlikely.
• Thin red line: Entry price for selling.
• Thick red line: Suggested Take Profit level, as further declines below this point are unlikely.
• MACD Indicator: Use the MACD to identify overbought or oversold conditions before entering the market.

Important Notes:Beginner Forex traders should exercise extreme caution when making market entry decisions, especially before major news releases, to avoid sharp price fluctuations. If you choose to trade during news events, always set stop-loss orders to minimize potential losses. Without stop-loss orders, you risk losing your entire deposit, especially when trading large volumes without proper money management.

Remember: Successful trading requires a clear plan, as outlined above. Impulsive trading decisions based on current market conditions are typically unprofitable for intraday traders.