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10.12.202413:33 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on December 10th (U.S. Session)

Analysis of Trades and Trading Tips for the British Pound

The test of the 1.2742 level occurred as the MACD indicator was just starting to move downward from the zero line, confirming a valid entry point for selling the pound. However, the pair failed to experience a significant decline. The lack of statistics was the main reason for the absence of clear and directional movement.

Given that no important U.S. data is scheduled today and with no new statements from Federal Reserve officials, traders are likely to look for opportunities to buy risk assets. This could result in temporary market volatility but is unlikely to lead to major movements.

It's essential to remember that risk assets are influenced by various external factors, such as changes in economic policy, geopolitical instability—which is especially relevant now—and internal corporate news.

As for U.S. data, today's reports include the NFIB Small Business Optimism Index, labor productivity in the non-manufacturing sector, and labor costs. Weak figures could trigger another upward push for the pound against the U.S. dollar.

For intraday strategy, I will focus on implementing Scenario #1 and Scenario #2.

Exchange Rates 10.12.2024 analysis

Buy Signal

Scenario #1:Buy the pound today at the entry point near 1.2768 (green line on the chart) with a target of 1.2794 (thicker green line on the chart). At 1.2794, I plan to exit long positions and open short positions in the opposite direction, expecting a movement of 30–35 points downward. Today's potential pound rally is tied to the recently observed upward trend.Important: Before buying, ensure the MACD indicator is above the zero line and just starting to rise.

Scenario #2:I also plan to buy the pound if there are two consecutive tests of the 1.2749 level when the MACD indicator is in the oversold area. This would limit the pair's downward potential and lead to a reversal upward. Growth can be expected toward the 1.2768 and 1.2794 levels.

Sell Signal

Scenario #1:Sell the pound after it breaks below 1.2749 (red line on the chart), which could lead to a quick decline in the pair. The key target for sellers will be 1.2721, where I plan to exit short positions and immediately open long positions in the opposite direction, expecting a 20–25 point rebound. Sellers will only assert themselves if buyers are absent near the daily high.Important: Before selling, ensure the MACD indicator is below the zero line and just starting to decline.

Scenario #2:I also plan to sell the pound if there are two consecutive tests of the 1.2768 level when the MACD indicator is in the overbought area. This would limit the pair's upward potential and lead to a reversal downward. A decline can be expected toward the 1.2749 and 1.2721 levels.

Exchange Rates 10.12.2024 analysis

Chart Notes

  • Thin Green Line: Entry price for buying the instrument.
  • Thick Green Line: Target price for Take Profit or manually fixing profits, as further growth above this level is unlikely.
  • Thin Red Line: Entry price for selling the instrument.
  • Thick Red Line: Target price for Take Profit or manually fixing profits, as further declines below this level are unlikely.
  • MACD Indicator: Focus on overbought and oversold areas when entering the market.

Important Advice for Beginner Forex Traders:

  • Exercise caution when making market entry decisions.
  • Avoid trading before the release of major fundamental reports to prevent being caught in sharp price fluctuations.
  • If trading during news releases, always set stop-loss orders to minimize losses. Without stop-losses, you risk quickly losing your entire deposit, especially when trading large volumes without proper money management.
  • Always have a clear trading plan, like the one outlined above. Spontaneous trading decisions based on current market conditions are inherently a losing strategy for intraday traders.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Jakub Novak,
Analytical expert of InstaSpot
© 2007-2024
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