GBP/USD: Simple trading tips for beginners on November 3rd
November 3, 2023 10:24 am
Analysis of Trades and Trading Tips for the British Currency
The test of the price at 1.2199 in the afternoon coincided with the moment when the MACD indicator had risen significantly above the zero mark, which limited the pound’s bullish potential. For this reason, I did not buy, especially after the Bank of England announced a rather weak growth forecast of the British economy, keeping interest rates unchanged. The central bank also hinted that they do not plan to raise rates further but will continue to combat high inflation. Today, the UK will release its Services PMI, along with figures for the composite PMI index. A weak report will lead to the pound’s fall in the first half of the day. BoE MPC member Huw Pill’s speech is unlikely to have a significant impact on the pair. As for the intraday strategy, I will act more based on the realization of scenario #1.
Buy Signal
Scenario #1: Today, you can buy the pound when the price reaches around 1.2208 (green line on the chart), with the goal of reaching 1.2240 (the thicker green line on the chart). I recommend exiting the market around 1.2240 and selling the pound in the opposite direction, targeting a 30-35 point move from the entry point. Pound growth can be expected in the first half of the day, in continuation of the uptrend, which may gain significant strength after the US labor market report is published. Important! Before buying, make sure that the MACD indicator is above the zero level and has just started to rise from it.
Scenario #2: You can also buy the pound today if there are two consecutive tests of the price at 1.2195 while the MACD indicator is in the oversold area. This will limit the pair’s bearish potential and lead to a market reversal to the upside. Expect an increase to the opposite levels of 1.2208 and 1.2240.
Sell Signal
Scenario #1: Selling the pound today can only be done after updating the 1.2195 level (red line on the chart), which will lead to a rapid decline in the pair. The key target for sellers will be 1.2161, where I recommend exiting short positions and opening longs in the opposite direction, targeting a 20–25 point move in the opposite direction from the level. Sellers may return at any moment, especially after failing to break above the daily high. Important! Before selling, make sure that the MACD indicator is below the zero level and has just started to decline from it.
Scenario #2: You can also sell the pound today if there are two consecutive tests of the price at 1.2208 while the MACD indicator is in the overbought area. This will limit the pair’s bullish potential and lead to a market reversal downward. Expect a decrease to the opposite levels of 1.2195 and 1.2161.
On the chart:
Thin green line – entry price for buying the trading instrument.
Thick green line – the expected price where you can set Take Profit or independently fix profits, as further growth beyond this level is unlikely.
Thin red line – entry price for selling the trading instrument.
Thick red line – the expected price where you can set Take Profit or independently fix profits, as further decline below this level is unlikely.
MACD indicator. When entering the market, it is important to consider the overbought and oversold zones.
Important. For novice traders in the forex market, it is essential to be very cautious when making entry decisions. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price swings. If you decide to trade during news releases, always set stop orders to minimize losses. Without placing stop orders, you can quickly lose your entire deposit, especially if you are not using proper risk management and are trading with large volumes.
And remember that for successful trading, you need to have a clear trading plan, similar to the one presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for intraday traders.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis of Trades and Trading Tips for the British Currency
The test of the price at 1.2199 in the afternoon coincided with the moment when the MACD indicator had risen significantly above the zero mark, which limited the pound’s bullish potential. For this reason, I did not buy, especially after the Bank of England announced a rather weak growth forecast of the British economy, keeping interest rates unchanged. The central bank also hinted that they do not plan to raise rates further but will continue to combat high inflation. Today, the UK will release its Services PMI, along with figures for the composite PMI index. A weak report will lead to the pound’s fall in the first half of the day. BoE MPC member Huw Pill’s speech is unlikely to have a significant impact on the pair. As for the intraday strategy, I will act more based on the realization of scenario #1.
Buy Signal
Scenario #1: Today, you can buy the pound when the price reaches around 1.2208 (green line on the chart), with the goal of reaching 1.2240 (the thicker green line on the chart). I recommend exiting the market around 1.2240 and selling the pound in the opposite direction, targeting a 30-35 point move from the entry point. Pound growth can be expected in the first half of the day, in continuation of the uptrend, which may gain significant strength after the US labor market report is published. Important! Before buying, make sure that the MACD indicator is above the zero level and has just started to rise from it.
Scenario #2: You can also buy the pound today if there are two consecutive tests of the price at 1.2195 while the MACD indicator is in the oversold area. This will limit the pair’s bearish potential and lead to a market reversal to the upside. Expect an increase to the opposite levels of 1.2208 and 1.2240.
Sell Signal
Scenario #1: Selling the pound today can only be done after updating the 1.2195 level (red line on the chart), which will lead to a rapid decline in the pair. The key target for sellers will be 1.2161, where I recommend exiting short positions and opening longs in the opposite direction, targeting a 20–25 point move in the opposite direction from the level. Sellers may return at any moment, especially after failing to break above the daily high. Important! Before selling, make sure that the MACD indicator is below the zero level and has just started to decline from it.
Scenario #2: You can also sell the pound today if there are two consecutive tests of the price at 1.2208 while the MACD indicator is in the overbought area. This will limit the pair’s bullish potential and lead to a market reversal downward. Expect a decrease to the opposite levels of 1.2195 and 1.2161.
On the chart:
Thin green line – entry price for buying the trading instrument.
Thick green line – the expected price where you can set Take Profit or independently fix profits, as further growth beyond this level is unlikely.
Thin red line – entry price for selling the trading instrument.
Thick red line – the expected price where you can set Take Profit or independently fix profits, as further decline below this level is unlikely.
MACD indicator. When entering the market, it is important to consider the overbought and oversold zones.
Important. For novice traders in the forex market, it is essential to be very cautious when making entry decisions. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price swings. If you decide to trade during news releases, always set stop orders to minimize losses. Without placing stop orders, you can quickly lose your entire deposit, especially if you are not using proper risk management and are trading with large volumes.
And remember that for successful trading, you need to have a clear trading plan, similar to the one presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for intraday traders.
The material has been provided by InstaForex Company – www.instaforex.com
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