14.11.202409:06 Forex Analysis & Reviews: GBPUSD: Simple Trading Tips for Beginner Traders on November 14. Review of Yesterday's Forex Trades

Trade Analysis and Tips for Trading the British Pound

The test of the 1.2731 level occurred when the MACD indicator was just beginning its downward movement from the zero mark, confirming the correct entry point for selling the pound. As a result, the pair dropped by more than 35 pips, even falling below the target level of 1.2705. News about rising inflation in the U.S. triggered pound sales and increased demand for the U.S. dollar.

Again, there is no significant economic data from the UK, meaning pound buyers will have minimal chances for a correction—especially considering the pair's strong oversold condition. However, remember that buying the pound means trading against the trend. I will primarily focus on Scenario 1 and Scenario 2 for intraday strategy.

Buy Signal

Scenario 1:

Today, I plan to buy the pound upon reaching the 1.2707 level (green line on the chart) with a target of 1.2734 (thicker green line on the chart). Around 1.2734, I plan to exit purchases and open sell positions in the opposite direction, expecting a 30–35 pip movement from the level. Any pound growth today will likely be within the scope of a minor correction. Important! Before buying, ensure the MACD indicator is above the zero mark and beginning to rise.

Scenario 2:

I also plan to buy the pound today if there are two consecutive tests of the 1.2671 level while the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to an upward reversal. Growth toward the opposing levels of 1.2707 and 1.2734 can be expected.

Sell Signal

Scenario 1:

I plan to sell the pound after the price breaks below the 1.2671 level (red line on the chart), which could lead to a quick drop in the pair. The key target for sellers will be 1.2639, where I plan to exit sales and immediately open purchases in the opposite direction, expecting a 20–25 pip movement upward from the level. Selling the pound is viable, but selling at higher levels is better. Important! Before selling, ensure the MACD indicator is below the zero mark and beginning to decline.

Scenario 2:

I also plan to sell the pound today if there are two consecutive tests of the 1.2707 level while the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a reversal downward. A decline toward the opposing levels of 1.2671 and 1.2639 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.