Analysis of Trades and Trading Tips for the British Pound

The test of the price at 1.2700 occurred when the MACD indicator had surged significantly above the zero mark, limiting further upward potential for the pair. I didn't wait for a second test of this level, so I didn't see any entry points for selling. In the second half of the day, I am awaiting consumer confidence data from the US, which could further undermine the British pound, preventing it from continuing yesterday's gains. Figures on the housing price index and the Richmond Fed Manufacturing Index individually are unlikely to influence the market direction for the pair, so it's better to focus on the speeches of FOMC members Michelle Bowman and Liza D. Cook. As for the intraday strategy, I plan to act based on the implementation of scenarios #1 and #2.

Signal to Buy

Scenario #1: Today, I plan to buy the pound when it reaches the entry point around 1.2700 (green line on the chart) with a target for growth to the level of 1.2725 (thicker green line on the chart). At 1.2725, I will exit the buys and open sales in the opposite direction (aiming for a move of 30-35 points in the opposite direction from the level). Today, the rise of the pound 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 is just starting its rise from it.

Scenario #2: I also plan to buy the pound today in case of two consecutive tests of the price at 1.2672, at a time when the MACD indicator is in oversold territory. This will limit the downward potential of the pair and lead to a reversal upward in the market. Expect growth towards the opposite levels of 1.2700 and 1.2725.

Signal to Sell

Scenario #1: Today, I plan to sell the pound after it updates the level of 1.2672 (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 1.2652, where I will exit the sales and immediately open buys in the opposite direction (anticipating a move of 20-25 points in the opposite direction from the level). Sellers will show themselves after weak figures from the US. 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 1.2700, at a time when the MACD indicator is in overbought territory. This will limit the upward potential of the pair and lead to a reversal downward in the market. Expect a decline towards the opposite levels of 1.2672 and 1.2652.

What's on the Chart:

• Thin green line - entry price for buying the trading instrument.
• Thick green line - target price where you can place Take Profit orders or manually lock in profits, as further growth above this level is unlikely.
• Thin red line - entry price for selling the trading instrument.
• Thick red line - target price where you can place Take Profit orders or manually lock in profits, as further decline below this level is unlikely.
• MACD Indicator. When entering the market, it's important to consider 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 being caught in sharp price fluctuations. If you decide to trade during news releases, always use stop orders to minimize losses. You need to place stop orders to quickly lose your entire deposit, especially if you're not using proper money management and trading 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 initially a losing strategy for intraday traders.