GBP/USD: Simple Trading Tips for Beginner Traders on December 10. Analysis of Yesterday's Forex Trades

[Ben Graham]

Analysis of Trades and Trading Tips for the British Pound

The first test of the price at 1.3323 occurred when the MACD indicator had moved significantly down from the zero mark, which limited the pair's downward potential. For this reason, I did not sell the pound.

Strong US labor market data from ADP and JOLTs helped the dollar rise against the pound yesterday. Economists and analysts note that the resilience of the US labor market, despite recent signs of weakness, provides significant support for the dollar. This, in turn, puts pressure on other countries' currencies, particularly the British pound.

Today, traders have little to anticipate in the first half of the day. The sluggish market ahead of the US FOMC meeting, lacking catalysts, signals a consolidation period in which short-term fluctuations will be driven more by technical factors and speculative sentiment than by a deep analysis of the economic situation. In such conditions, the importance of closely monitoring price charts and using technical analysis tools to identify entry and exit points increases.

Regarding the intraday strategy, I will rely more on executing Scenarios 1 and 2.

Buy Scenarios

Scenario 1: I plan to buy the pound today upon reaching an entry point around 1.3316 (green line on the chart), targeting a move to 1.3334 (thicker green line on the chart). At the point of 1.3334, I intend to exit the long positions and open shorts in the opposite direction (aiming for a movement of 30-35 pips from the entry level). A strong increase in the pound can only be expected after good data. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting an upward move from it.

Scenario 2: I also plan to buy the pound today if the price tests 1.3302 twice in a row while the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. You can expect a rise to the opposite levels of 1.3316 and 1.3334.

Sell Scenarios

Scenario 1: I plan to sell the pound today after the 1.3302 level is updated (red line on the chart), which will trigger a quick decline in the pair. The key target for sellers will be the 1.3285 level, where I intend to exit the shorts and immediately buy back in the opposite direction (aiming for a move of 20-25 pips in the opposite direction from this level). Pound sellers will show their strength in the case of weak data. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just starting its downward movement from it.

Scenario 2: I also plan to sell the pound today if the price tests 1.3316 twice in a row while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. You can expect a decline to the opposite levels of 1.3302 and 1.3285.

What's on the Chart:

• Thin green line – entry price at which you can buy the trading instrument;
• Thick green line – estimated price where you can set Take Profit or take profit yourself, as further growth above this level is unlikely;
• Thin red line – entry price at which you can sell the trading instrument;
• Thick red line – estimated price where you can set Take Profit or take profit yourself, as further decline below this level is unlikely;
• MACD Indicator. When entering the market, it is essential to be guided by overbought and oversold zones.

Important: Beginner traders in the Forex market need to make entry decisions with great caution. It is best to stay out of the market before significant fundamental reports to avoid sudden price fluctuations. If you choose to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for the intraday trader.

The material has been provided by InstaForex Company - www.instaforex.com