FX.co ★ How to Trade GBP/USD on November 10: Simple Tips and Trade Analysis for Beginner Traders

Analysis of Monday's Trades:

GBP/USD 1H Chart.

The GBP/USD pair also posted solid gains on Tuesday, potentially driven solely by easing geopolitical tensions around the world. It is worth recalling that Donald Trump's rhetoric changed somewhat following the Republicans' defeat in the congressional elections. Washington is now prepared to make certain concessions to Iran and is also showing no intention of launching further strikes. Tehran is likewise demonstrating a willingness to make some concessions regarding nuclear energy, meaning that the conflict may finally move toward a diplomatic resolution. The Forex market is unlikely to remain sensitive to geopolitical developments nine months after the conflict began, although some market reaction cannot be ruled out. It is worth noting that the British pound generally trades in a much more predictable manner than the euro, so its appreciation can be viewed as part of an ongoing trend. However, the trendline was broken on Friday, so a new downward move is likely this week. Today, the US Consumer Price Index (CPI) for October will be released. If the reading exceeds forecasts, the dollar could strengthen significantly.

GBP/USD 5M Chart.

One buy signal was formed on the 5-minute timeframe on Monday. At the very beginning of the European trading session, the price broke above the 1.3380–1.3386 level, allowing traders to open long positions. By the end of the day, the pair had gained at least 30–35 points, which could have been secured as profit.

How to Trade on Tuesday:

In the hourly timeframe, GBP/USD has presumably completed the formation of an upward trend. The British pound generally trades more logically than the euro, so it has a good chance of resuming its upward trend once the correction is complete. The technical picture across almost all timeframes supports further gains in the pair. The sideways channels on the daily and weekly timeframes do not suggest a significant decline in the British currency.

On Tuesday, beginner traders may consider opening short positions targeting 1.3380–1.3386 if the price rebounds from the 1.3456–1.3476 level. Long positions may be opened with a target of 1.3587–1.3598 if the price consolidates above the 1.3456–1.3476 level.

On the 5-minute timeframe, the following levels can be used for trading: 1.3043, 1.3096–1.3107, 1.3175–1.3180, 1.3259–1.3267, 1.3319–1.3331, 1.3380–1.3386, 1.3456–1.3476, 1.3587–1.3598, and 1.3631–1.3641. No important economic events or data releases are scheduled in the United Kingdom on Tuesday, while the United States will publish the week's main inflation report. Therefore, the pair may experience high volatility during the US trading session. The dollar is likely to resume its advance only if October inflation accelerates more than the market expects.

Main Rules of the Trading System:

1. Signal strength is determined by the time required for a signal to form (a rebound from or a break through a level). The less time required, the stronger the signal.
2. If two or more trades have been opened near a particular level based on false signals, all subsequent signals from that level should be ignored.
3. In a sideways market, any currency pair may generate numerous false signals or none at all. Technical levels may be disregarded.
4. On the hourly timeframe, it is advisable to trade MACD indicator signals only when market volatility is sufficient and a trend is confirmed by a trendline or trend channel.
5. If two levels are located too close to each other (5–20 points apart), they should be treated as a single support or resistance zone.
6. Once the price has moved 15 points in the correct direction, the Stop Loss should be moved to the breakeven level.

What the Charts Show:

Support and resistance price levels (zones) are levels that serve as targets when opening buy or sell positions or as potential sources of trading signals.

Red lines represent channels or trendlines that show the current trend and indicate the preferred direction for trading.

MACD indicator (14, 22, 3) – the histogram and signal line serve as supplementary indicators that can also be used as sources of trading signals.

Important speeches and economic reports (listed in the economic calendar) can have a significant impact on currency pair movements. Therefore, trading should be approached with extreme caution when such events take place. Alternatively, positions can be closed to avoid a sharp price reversal against the preceding movement.

Beginner Forex traders should remember that not every trade can be profitable. Developing a clear trading strategy and following sound money management principles are essential for long-term trading success.