Trade analysis and tips for trading the British pound
The test of the price at 1.2628 in the first half of the day occurred when the MACD had risen significantly above the zero mark, limiting the further downward potential of the pair. For this reason, I did not buy the pound. Sometime later, there was another similar test, and the MACD was starting to move up from the zero mark, allowing entry into the market, but there was no significant upward movement. About 10 points and demand for the pound decreased. Considering that there is no data on the US in the second half of the day, the pound's rise may continue, but be careful with purchases at the daily maximum. The absence of buyer activity can lead to a pair reversal and rapid decline. As for the intraday strategy, I will rely more on scenarios 1 and 2.
Buy Signal
Scenario 1: Today, I plan to buy the pound when the entry point reaches around 1.2645 (green line on the chart), with a target of rising to 1.2675 (thicker green line). At around 1.2675, I will exit purchases and open sales in the opposite direction (expecting a movement of 30-35 points in the opposite direction from the level). The pound's rise today can be expected to continue the morning trend, but active buyer actions are needed. Important! Before buying, ensure 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 1.2623 when the MACD indicator is in oversold territory. This will limit the downward potential of the pair and lead to a reversal of the market upwards. Expect a rise to the opposite levels of 1.2645 and 1.2675.
Sell Signal
Scenario 1: Today, I plan to sell the pound after updating the level of 1.2652 (red line on the chart), leading to a rapid decline in the pair. The key target for sellers will be the level of 1.2622. I will exit 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 only against strong US consumer confidence data. Important! Before selling, make sure that the MACD indicator is below the zero mark and just starting to decline.
Scenario 2: I also plan to sell the pound today in case of two consecutive tests of the price at 1.2671 when the MACD indicator is in overbought territory. This will limit the upward potential of the pair and lead to a reversal of the downward market. Expect a decline to the opposite levels of 1.2652 and 1.2622.
What's on the chart:
Thin green line – entry price, at which the trading instrument can be bought.
Thick green line – the expected price where you can set Take Profit or manually take profits, as further growth above this level is unlikely.
Thin red line – entry price at which the trading instrument can be sold.
Thick red line – the expected price where you can set Take Profit or manually take profits, as further decline below this level is unlikely.
MACD indicator. When entering the market, following the overbought and oversold zones is important.
Important. Beginner traders in the forex market must be careful when making entry decisions. It is best to stay out of the market before important fundamental reports are released to avoid being caught in sharp exchange rate fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. You can quickly lose your deposit without placing stop orders, especially if you do not use money management and trade in large volumes.
And remember, for successful trading, you need to have a clear trading plan, similar to the one I presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.