Analysis of Trades and Trading Tips for the British Pound

Testing the 1.2718 price level coincided with the MACD indicator just starting to move up from the zero line, confirming a correct entry point for buying the pound, resulting in a rise of over 20 pips for the pair. The inflation data from the UK met the expectations of economists and the Bank of England. Still, they did not exceed them, indicating the pound's potential to continue rising until tomorrow's regulatory meeting. However, be cautious with buying, and if there is no activity at the daily high, it's better to postpone long positions to a more suitable moment. Considering that the only data for the second half of the day is the NAHB Housing Market Index, pressure on the pound is likely to return if there is an unsuccessful breakout of local highs. As for the intraday strategy, I plan to act based on the implementation of scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, I plan to buy the pound upon reaching the entry point around 1.2739 (green line on the chart) with a target of rising to 1.2765 (thicker green line on the chart). Around 1.2765, I will exit the buys and open sells in the opposite direction (aiming for a move of 30-35 pips in the opposite direction from the level). The pound's rise today can only be expected after weak US data. Important! Before buying, make sure the MACD indicator is above the zero line and just starting to rise from it.

Scenario No. 2: Today, I also plan to buy the pound in the event of two consecutive tests of the 1.2719 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. We can expect a rise to the opposite levels of 1.2739 and 1.2765.

Sell Signal

Scenario No. 1: Today, I plan to sell the pound after it breaks below the 1.2719 level (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the 1.2687 level, where I will exit the sales and immediately open buys in the opposite direction (aiming for a move of 20-25 pips in the opposite direction from the level). Sellers will show their presence in case of unsuccessful attempts to return to the daily high. Important! Before selling, make sure the MACD indicator is below the zero line and just starting to decline from it.

Scenario No. 2: Today, I also plan to sell the pound in the event of two consecutive tests of the 1.2739 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downwards. We can expect a decline to the opposite levels of 1.2719 and 1.2687.

What's on the chart:

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: Estimated price for setting Take Profit or manually taking profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: Estimated price for setting Take Profit or manually taking profits, as further decline below this level is unlikely.
• MACD Indicator: It is important to use overbought and oversold zones when entering the market.

Important: Beginner traders in the forex market need to make entry decisions very cautiously. It is best to stay out of the market before the release of important fundamental reports to avoid sharp exchange rate fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

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