Analysis of Trades and Trading Tips for the British Pound

The test of the price at 1.2916 in the first half of the day occurred when the MACD indicator was just starting to move up from the zero mark, which confirmed the correct entry point for buying the pound in continuation of the upward trend. As a result, the pair moved up about 30 points. In the second half of the day, everything will start with the US Producer Price Index and the Producer Price Index excluding food and energy and will end with the University of Michigan Consumer Sentiment Index and inflation expectations from the same institution. Weak data indicating a decline in inflation will provoke new dollar sales, so the chances of continued growth for GBP/USD are quite good. As for the intraday strategy, I plan to act based on the implementation of scenarios #1 and #2 to continue the trend.

Buy Signal

Scenario #1: Today, I plan to buy the pound when the entry point reaches around 1.2978 (the green line on the chart) with the target of rising to the level of 1.3015 (the thicker green line on the chart). At the 1.3015 point, I will exit the purchases and open sales in the opposite direction (expecting a movement of 30-35 points in the opposite direction from the level). One can expect the pound to rise today in continuation of the upward trend and news of declining inflation. Important! Before buying, make sure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: I also plan to buy the pound today in case of two consecutive tests of the price at 1.2948 when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to a market reversal upward. Growth can be expected to the opposite levels of 1.2978 and 1.3015.

Sell Signal

Scenario #1: I plan to sell the pound today after updating the level of 1.2948 (the red line on the chart), which will lead to a quick decline of the pair. The key target for sellers will be the level of 1.2914, where I will exit the sales and immediately open purchases in the opposite direction (expecting a movement of 20-25 points in the opposite direction from the level). Sellers will show themselves after a failed consolidation around the daily high and news of rising inflation. Important! Before selling, make sure the MACD indicator is below the zero mark and just starting to decline from it.

Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the price at 1.2978 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. Decline can be expected to the opposite levels of 1.2948 and 1.2914.

What's on the chart:

• Thin green line: Entry price to buy 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 to sell 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's important to be guided by overbought and oversold zones.

Important: Beginner traders in the forex market need to 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 set stop-loss orders to minimize losses. Without setting stop-loss orders, you can quickly lose your entire deposit, especially if you don't use money management and trade large volumes.

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