Analysis of Trades and Trading Tips for the British Pound

The test of the 1.2920 price level occurred when the MACD indicator was starting to move down from the zero mark, but at the time of writing, no significant downward movement had materialized. It is expected that this scenario will play out in the second half of the day, as the direction of the pound is downward and, as shown in the European session, there is a lack of buyer interest. The absence of US fundamental statistics could positively affect those betting on further pound declines and the dollar's strengthening. Regarding the intraday strategy, I plan to act based on Scenario #1 and Scenario #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound at the entry point around 1.2940 (green line on the chart) with a target of rising to 1.2973 (thick green line). Around 1.2973, I will exit purchases and open sales in the opposite direction (expecting a movement of 30-35 points from the level). A significant rise in the pound is unlikely today. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario #2: I also plan to buy the pound today in case of two consecutive tests of the 1.2920 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. Growth is expected to reach the levels of 1.2940 and 1.2973.

Sell Signal

Scenario #1: I plan to sell the pound today after updating the 1.2920 level (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the 1.2891 level, where I will exit sales and immediately open purchases in the opposite direction (expecting a movement of 20-25 points from the level). Sellers may emerge after an unsuccessful consolidation around the daily high, although this is unlikely. Important! Before selling, make sure the MACD indicator is below the zero mark and starting to decline from it.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the 1.2940 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decline can be expected to the levels of 1.2920 and 1.2891.

Chart Legend:

• Thin green line: Entry price for buying the trading instrument.
• Thick green line: Expected price for placing Take Profit or manually fixing profits, as further growth above this level is unlikely.
• Thin red line: Entry price for selling the trading instrument.
• Thick red line: Expected price for placing Take Profit or manually fixing profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it is important to consider overbought and oversold zones.

Important: Beginner traders in the forex market should cautiously make market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. You must set stop orders to avoid losing your entire deposit, especially if you do not use money management and trade large volumes.

Remember, successful trading requires having 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 an intraday trader.