Analysis of Trades and Trading Tips for the British Pound
The price level of 1.3229 was tested when the MACD indicator was just starting to move towards the zero mark. Although this was not a confirmation of the correct entry point for a buy, as the indicator had not yet entered the positive zone, the desire to capture the European correction of the pound after the Asian sell-off was quite strong. As a result, I only gained 10 points before the price movement ended. The second half of the day may be under the influence of bearish trends, which could further harm the pound. The lack of U.S. statistics may positively impact U.S. dollar buyers, so I do not expect much growth from GBP/USD today. Regarding the intraday strategy, I plan to act based on the implementation of Scenarios #1 and #2.
Buying Signal
Scenario #1: Today, I plan to buy the pound upon reaching the entry point around 1.3236 (the green line on the chart), with a target of rising to the 1.3265 level (the thicker green line on the chart). Around 1.3265, 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. It is unlikely that the pound will see a significant rise today. Note: Before buying, ensure that the MACD indicator is above the zero mark and is beginning to rise from it.
Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.3205 price level, at a time when the MACD indicator is in the oversold area. This will limit the pair's downward potential and may lead to an upward market reversal. We can expect growth towards the levels of 1.3236 and 1.3265.
Selling Signal
Scenario #1: I plan to sell the pound today after updating the 1.3205 level (the red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be the 1.3180 level, where I will exit the sales and also immediately open purchases in the opposite direction, expecting a movement of 20-25 points in the opposite direction from the level. Sellers will become more active if there is a lack of significant movement around the 1.3235 level. Note: Before selling, ensure that the MACD indicator is below the zero mark and is beginning to decline from it.
Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the 1.3236 price level, at a time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and may lead to a downward market reversal. We can expect a decline towards the levels of 1.3205 and 1.3180.
Chart Key:
Thin green line: The entry price at which you can buy the trading instrument.Thick green line: The expected price where you can set Take Profit or manually lock in profits, as further growth above this level is unlikely.Thin red line: The entry price at which you can sell the trading instrument.Thick red line: The expected price where you can set Take Profit or manually lock in profits, as further decline below this level is unlikely.MACD Indicator: When entering the market, it's important to consider overbought and oversold zones.Important: Beginner traders in the Forex market need to make market entry decisions very carefully. It is best to stay out of the market before significant fundamental reports are released to avoid sharp 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 are not using proper money management and are trading large volumes.
Remember that successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are an inherently losing strategy for intraday traders.