Analysis of trades and trading tips for the British pound
Testing the 1.2755 level occurred when the MACD indicator had significantly moved above the zero mark, which limited further growth of the pound, so I did not buy and stayed out of the market. Even though the pound continues to rise, buying near the monthly high without strong fundamental statistics is not the best decision. There are also no data releases in the second half of the day, so pound buyers may need help overcoming 1.2755 again. If there is no upward movement after the next breakthrough of 1.2755, it is best to stick to trading within the channel formed earlier in the day. For the intraday strategy, I plan to rely on scenario #2.
Buy Signal
Scenario #1: Today, I plan to buy the pound at the entry point around 1.2767 (green line on the chart) with a target of rising to the 1.2806 level (thicker green line). Around 1.2806, I will exit the buy and open sell positions in the opposite direction (aiming for a move of 30-35 pips from the level). The pound can be expected to continue its upward trend today, but only after breaking through the monthly high. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.
Scenario #2: I also plan to buy the pound today if two consecutive tests of the 1.2743 price exist when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Growth can be expected to the opposite levels of 1.2767 and 1.2806.
Sell Signal
Scenario #1: Today, I plan to sell the pound after the 1.2743 (red line on the chart) is updated, leading to a quick decline in the pair. The key target for sellers will be 1.2707, where I will exit the sell positions and immediately open buy positions in the opposite direction (aiming for a move of 20-25 pips from the level). Sellers will become active if there is no buyer activity around the monthly high by mid-US trading. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline.
Scenario #2: I also plan to sell the pound today if two consecutive tests of the 1.2767 price exist when the MACD indicator is overbought. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected to the opposite levels of 1.2743 and 1.2707.
Chart Key:
Thin Green Line: Entry price for buying the trading instrument.Thick Green Line: Expected price where Take Profit can be set or profits can be fixed independently, as further growth above this level is unlikely.Thin Red Line: Entry price for selling the trading instrument.Thick Red Line: Expected price where Take Profit can be set or profits can be fixed independently, as further decline below this level is unlikely.MACD Indicator: When entering the market, following the overbought and oversold zones is important.Important Notes for Beginner Traders:
Beginner forex traders should be very cautious when making market entry decisions. It is best to stay out of the market before important fundamental reports are released to avoid sudden price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
Remember, successful trading requires a clear 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.