Analysis of Trades and Tips for Trading the British Pound

The first test of the 1.3176 level occurred when the MACD indicator was already significantly above the zero mark, limiting the pair's upward potential. For this reason, I did not buy the pound. The second test of 1.3176 coincided with the MACD indicator being in the overbought area, confirming it was the correct entry point for selling. However, as you can see on the chart, the pair didn't move down, resulting in a loss on the trade. In the second half of the day, GBP/USD movement will depend on U.S. data regarding the Core Personal Consumption Expenditures (PCE) Index, personal spending, and income levels. If inflation rises, the pair could experience a significant drop. Conversely, if the data is weaker, the pound is likely to strengthen, continuing the upward trend. For intraday strategy, I plan to act based on the implementation of scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound when the price reaches the 1.3190 level (green line on the chart) with the target of rising to 1.3219 (thicker green line on the chart). At the 1.3219 level, I will exit the market and open a short position, targeting a 30-35 point movement back from that level. The pound's growth today is likely only following weak U.S. statistics. Important! Before buying, make sure the MACD indicator is above the zero mark and just starting to rise.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.3171 level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal. Growth towards the 1.3190 and 1.3219 levels can be expected.

Sell Signal

Scenario #1: I will sell the pound after the 1.3171 level is breached (red line on the chart), which should lead to a quick drop in the pair. The key target for sellers will be the 1.3145 level, where I will exit the short position and immediately open a buy position, targeting a 20-25 point movement back from that level. Sellers will dominate in the event of rising inflation in the U.S., or even with a moderate inflation decline. Important! Before selling, make sure the MACD indicator is below the zero mark and just starting to decline.

Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the 1.3190 level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal. A drop towards the 1.3171 and 1.3145 levels can be expected.

Chart Description:

• Thin green line: The entry price for buying the asset.
• Thick green line: The anticipated price for setting a Take Profit or manually securing profits, as further growth above this level is unlikely.
• Thin red line: The entry price for selling the asset.
• Thick red line: The anticipated price for setting a Take Profit or manually securing profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it is important to consider overbought and oversold areas.

Important:

Beginner traders should be very cautious when making market entry decisions. It's best to stay out of the market before the release of important fundamental reports to avoid sudden exchange rate fluctuations. If you choose to trade during news releases, always place 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 in large volumes.

And remember, successful trading requires a clear trading plan, similar to the one presented above. Spontaneous trading decisions based on the current market situation are a losing strategy for an intraday trader.