Analysis of Trades and Trading Tips for the British Pound

The test of the price at 1.2665 occurred at a moment when the MACD indicator had just started moving downward from the zero mark, confirming the scenario for selling the pound. As a result, the pair moved down more than 25 points. Buying on the rebound from 1.2647 also yielded about 15 points in profit. The absence of UK statistics had a negative impact on the pound's prospects, which weakened against the dollar along with other risky assets. In the second half of the day, apart from data on home sales volume in the primary US market, there was nothing else, giving pound buyers a chance for correction. Federal Reserve officials' speeches are also not scheduled, which will favor the bulls, as hawkish remarks from policymakers have recently supported the dollar. Regarding the intraday strategy, I plan to act based on the execution of scenarios #1 and #2.

Signal for Buying

Scenario #1: Today, I plan to buy the pound when it reaches the entry point around 1.2669 (green line on the chart) with a target to rise to the level of 1.2694 (thicker green line on the chart). I will exit the purchases around 1.2694 and initiate sales in the opposite direction (aiming for a movement of 30-35 points in the opposite direction from the level). The pound's upward movement today can be expected only after weak data from the US. Important! Before buying, make sure that the MACD indicator is above the zero mark and just start its upward movement from it.

Scenario #2: I also plan to buy the pound today in case of two consecutive tests of the price at 1.2650, at a moment when the MACD indicator is in the overbought zone. This will limit the downward potential of the pair and lead to a reversal of the market upwards. Expect growth towards the opposite levels of 1.2669 and 1.2694.

Signal for Selling

Scenario #1: Today, I plan to sell the pound after it updates to the level of 1.2650 (red line on the chart), which will lead to a rapid decline in the pair. The key target for sellers will be the level of 1.2627, where I will exit the sales and also initiate purchases in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Sellers will show themselves after strong US figures. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting its decline from it.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the price at 1.2669, at a moment when the MACD indicator is in the overbought zone. This will limit the upward potential of the pair and lead to a reversal of the market downwards. Expect a decline towards the opposite levels of 1.2650 and 1.2627.

What's on the chart:

• Thin green line – entry price for buying the trading instrument;
• Thick green line – expected price where you can place Take Profit or independently fix profit, as further growth above this level is unlikely;
• Thin red line – entry price for selling the trading instrument;
• Thick red line – expected price where you can place Take Profit or independently fix profit, as further decline below this level is unlikely;
• MACD indicator. When entering the market, it's important to follow overbought and oversold zones.

Important. Beginner traders in the Forex market need to make entry decisions very cautiously. It's best to stay out of the market before important fundamental reports are released to avoid sudden price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you're not using proper money management and trading with large volumes.

And remember, successful trading requires a clear trading plan similar to the one presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for intraday traders.