17.03.202509:03 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on March 17. Review of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the British Pound

The price test at 1.2931 occurred when the MACD indicator moved significantly downward from the zero mark, limiting the pair's downside potential. For this reason, I did not sell the pound and did not find any other entry points into the market.

Despite relatively weak UK GDP and industrial production data, the British pound held its ground against the dollar. This is due to several factors. First, investors seem to be betting that the Bank of England will be less aggressive in cutting interest rates as it continues its fight against inflation. Second, the weakness of the US dollar is providing additional support for the GBP/USD pair. Concerns over a slowdown in the US economy and the potential for further interest rate cuts by the Federal Reserve are reducing the dollar's appeal.

There are no economic reports from the UK today, so the pound could resume its growth at any moment. Tired of uncertainty, investors might decide that the worst is over and start buying the British currency again, especially if they see signs of economic stabilization. A hawkish stance from the BoE could also support the pound.

For intraday strategy, I will primarily rely on Scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound if the entry point reaches around 1.2941 (green line on the chart), targeting an increase to 1.2970 (thicker green line on the chart). Around 1.2970, I plan to exit buy positions and open sell trades in the opposite direction, expecting a 30-35 pip move downward from this level. The pound's growth will likely continue in line with the upward trend. Important! Before buying, ensure that the MACD indicator is above the zero mark and has just started rising.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.2925 price level while the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. Growth to the opposite levels of 1.2941 and 1.2970 can be expected.

Sell Signal

Scenario #1: Today, I plan to sell the pound after it breaks below 1.2925 (red line on the chart), likely leading to a rapid decline in the pair. The key target for sellers will be 1.2898, where I plan to exit my sell positions and immediately open buy trades in the opposite direction, expecting a 20-25 pip rebound from this level. It is best to sell the pound as high as possible. Important! Before selling, ensure that the MACD indicator is below the zero mark and has just started declining.

Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the 1.2941 price level while the MACD indicator is in the overbought area. This will limit the pair's upside potential and lead to a market reversal downward. A decline to the opposite levels of 1.2925 and 1.2898 can be expected.

What's on the Chart:

• The thin green line represents the entry price where the trading instrument can be bought.
• The thick green line indicates the expected price level where a Take Profit order can be placed, or profits can be manually secured, as further price growth above this level is unlikely.
• The thin red line represents the entry price where the trading instrument can be sold.
• The thick red line indicates the expected price level where a Take Profit order can be placed, or profits can be manually secured, as further price decline below this level is unlikely.
• The MACD indicator should be used to assess overbought and oversold zones when entering the market.

Important Notes:

• Beginner Forex traders should exercise extreme caution when making market entry decisions. It is advisable to stay out of the market before the release of important fundamental reports to avoid exposure to sharp price fluctuations. If you choose to trade during news releases, always use stop-loss orders to minimize potential losses. Trading without stop-loss orders can quickly wipe out your entire deposit, especially if you neglect money management principles and trade with high volumes.
• Remember, successful trading requires a well-defined trading plan, similar to the one outlined above. Making impulsive trading decisions based on the current market situation is a losing strategy for intraday traders.