Analysis of Trades and Tips for Trading the British Pound

The test of the 1.3103 price occurred when the MACD indicator had already moved significantly below the zero mark, which limited the pair's downward potential. For this reason, I didn't sell the pound. I didn't wait for any other entry points as the pair continued its steady decline, but it didn't reach the target level of 1.3069, where I planned to buy on the rebound. The second half of the day is light on events, with attention focused only on U.S. wholesale trade inventories and consumer credit data. Only a significant divergence from forecasts in a worse direction could hinder the pair's downward potential. As for the 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 upon reaching the entry point around 1.3098 (green line on the chart), targeting a rise to the 1.3132 level (thicker green line on the chart). Around 1.3132, I will exit the buy position and open sell positions in the opposite direction, aiming for a 30-35 point move in the opposite direction. The pound's rise today can be expected after weak U.S. data. Important: Before buying, ensure that the MACD indicator is above the zero mark and is just starting its upward movement.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.3098 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. A rise to the subsequent levels of 1.3068 and 1.3030 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound today after breaking through the 1.3068 level (red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be the 1.3030 level, where I will exit the sell position and immediately open buy positions in the opposite direction (aiming for a 20-25 point move in the opposite direction). Sellers will assert themselves if strong US statistics are released. Important: Before selling, ensure that the MACD indicator is below the zero mark and is just starting its downward movement.

Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the 1.3098 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the subsequent levels of 1.3068 and 1.3030 can be expected.

What's on the Chart:

• Thin green line – The entry price where you can buy the trading instrument.
• Thick green line – The estimated price where you can place Take Profit or manually fix profits, as further growth above this level is unlikely.
• Thin red line – The entry price where you can sell the trading instrument.
• Thick red line – The estimated price where you can place Take Profit or manually fix profits, as further decline below this level is unlikely.
• MACD Indicator: When entering the market, it's important to use the overbought and oversold zones.

Important: Beginner traders in the forex market must be very cautious when making entry decisions. Before the release of important fundamental reports, it's best to stay out of the market to avoid sharp exchange rate fluctuations. If you decide to trade during news releases, always place stop-loss orders to minimize losses. Without stop-loss orders, you could quickly lose your entire deposit, especially if you don't use proper money management and trade with large volumes.

Remember, for successful trading, you need a clear trading plan, like the one provided above. Making spontaneous trading decisions based on the current market situation is a losing strategy for an intraday trader.