09.12.202509:15 Forex Analysis & Reviews: GBP/USD: Simple Trading Tips for Beginner Traders on December 9. Review of Yesterday's Forex Trades

Analysis of Trades and Trading Tips for the British Pound

The first test of the price at 1.3309 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. The second test at 1.3309 coincided with the MACD being in the oversold area, allowing for the implementation of Scenario 2 to buy the pound. As a result, the pair rose by 20 pips.

The British pound has corrected somewhat; however, it still has room to grow. In the UK, despite some signs of stabilization, inflation remains at a high level, putting pressure on the Bank of England. The central bank is forced to maintain a tight interest rate stance, which, in turn, supports the GBP/USD pair. Conversely, in the U.S., the situation appears different: inflation is gradually decreasing, while the labor market shows weakness. This compels the Federal Reserve to act more gently, which negatively affects the dollar relative to the pound.

This morning, there will be debates in Parliament regarding the BoE's report on monetary policy. This event will undoubtedly have a pivotal impact on the future dynamics of the pound sterling's exchange rate. Inflation-related issues will be of primary importance. Despite some successes in limiting price growth, the UK's inflation rate remains significantly above the target level. It is expected that Parliament members will raise questions about the BoE's next steps in combating inflation and the anticipated timelines for reaching target levels. The prospects for economic growth will also be a vital discussion point.

Regarding the intraday strategy, I will focus more on implementing Scenarios 1 and 2.

Buy Scenarios

Scenario 1: I plan to buy the pound today when the price reaches around 1.3337 (green line on the chart), with a target to rise to 1.3374 (thicker green line on the chart). Near 1.3374, I plan to exit my long positions and open a short position in the opposite direction (expecting a movement of 30-35 pips from the level). Anticipation of strong pound growth can only arise after good data. Important! Before buying, ensure that the MACD indicator is above the zero mark and just starting to rise from it.

Scenario 2: I also plan to buy the pound today if there are two consecutive tests of 1.3323 when the MACD indicator is in the oversold area. This would limit the pair's downside potential and lead to an upward market reversal. An increase toward the opposite levels of 1.3337 and 1.3374 can be expected.

Sell Scenarios

Scenario 1: I plan to sell the pound today after it breaks the 1.3323 level (red line on the chart), which will trigger a swift decline in the pair. The key target for sellers will be the 1.3285 level, where I intend to exit my short positions and immediately buy back (expecting a 20-25-pip move in the opposite direction from that level). Sellers of the pound will reveal themselves in case of weak data. Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting to decline from it.

Scenario 2: I also plan to sell the pound today, following two consecutive tests of 1.3337 when the MACD indicator is in the overbought area. This would limit the pair's upward potential and lead to a market reversal downward. A decline toward the opposite levels of 1.3323 and 1.3285 can be expected.

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.