23.03.202608:58 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on March 23. Analysis of Yesterday's Forex Trades

Analysis of Trades and Tips for Trading the British Pound

The test of the price at 1.3381 coincided with the moment when the MACD indicator was just beginning to turn down from the zero mark, confirming it as a valid entry point for selling the pound. As a result, the pair plummeted by more than 70 pips.

The chances of a US ground military operation in Iran may lead to another sell-off of the pound in the short term. The geopolitical tension caused by potential military intervention inevitably increases demand for the US dollar, as investors seek safe havens in such conditions. A new sharp rise in oil prices will lead to inflation growth worldwide, forcing the Bank of England to raise interest rates, further slowing the development of the British economy, which is detrimental to the pound and its future prospects. Given that there are no data for the UK today, the lack of fresh reports will likely continue to put pressure on the British currency.

Regarding the intraday strategy, I will primarily focus on implementing scenarios No. 1 and No. 2.

Buy Scenarios

Scenario 1: I plan to buy the pound today when it reaches an entry point around 1.3305 (green line on the chart), targeting a move to 1.3343 (thicker green line on the chart). At 1.3343, I plan to exit the long positions and open short positions in the opposite direction (expecting a move of 30-35 pips back from the level). Expecting a rise in the pound today seems unlikely. Important! Before buying, ensure the MACD indicator is above the zero mark and just beginning to rise.

Scenario 2: I also plan to buy the pound today if the price tests 1.3280 twice in a row while the MACD indicator is oversold. This will limit the pair's downward potential and lead to an upward market reversal. An increase towards opposing levels of 1.3305 and 1.3343 can be anticipated.

Sell Scenarios

Scenario 1: I plan to sell the pound today after the 1.3280 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 1.3238 level, where I plan to exit the shorts and immediately open longs in the opposite direction (expecting a move of 20-25 pips back from the level). Pressure on the pound will only increase. Important! Before selling, ensure the MACD indicator is below the zero mark and just beginning its decline.

Scenario 2: I also plan to sell the pound today if the price tests 1.3305 twice in a row, when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decrease towards opposing levels of 1.3280 and 1.3238 can be expected.

What's on the Chart:

• The thin green line represents the entry price at which you can buy the trading instrument;
• The thick green line is the assumed price where you can set Take Profit or manually take profit, as further growth above this level is unlikely;
• The thin red line indicates the entry price at which you can sell the trading instrument;
• The thick red line is the assumed price where you can set Take Profit or manually take profit, as further decline below this level is unlikely;
• The MACD indicator. When entering the market, it's important to refer to the overbought and oversold zones.

Important: Beginner traders in the forex market need to make entry decisions very carefully. It is best to stay out of the market before the release of important fundamental reports to avoid sharp fluctuations in prices. If you choose to trade during the release of news, always set Stop Loss orders to minimize losses. Without placing Stop Loss 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. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for intraday traders.