Analysis of Trades and Tips for Trading the British Pound:
The test of the 1.3393 price level occurred when the MACD indicator had significantly moved below the zero mark, limiting the pair's downward potential—particularly within yesterday's bullish market for the pound. Consequently, I refrained from selling, although the downward movement continued. We fell just a few points short of the 1.3358 target, preventing us from implementing the buy scenario on the rebound. Later today, we anticipate data on August's US new home sales and a speech by Federal Reserve representative Adriana Kugler. Strong statistics and explicit statements against quickly lowering rates are likely to strengthen the U.S. dollar and weaken the British pound. Otherwise, the chances of a GBP/USD correction will increase. For my intraday strategy, I plan to follow the implementation of scenarios #1 and #2.
Buy Signal:
Scenario #1: Today, I plan to buy the pound when the price reaches 1.3384 (indicated by a green line on the chart), aiming to rise to 1.3415 (denoted by a thicker green line). At 1.3415, I will exit the trade and initiate a sell order, expecting a 30-35 point movement from this level. A rise in the pound today is anticipated after weak U.S. statistics. Important: Before purchasing, ensure the MACD indicator is above zero and beginning to rise.Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.3362 price level, with the MACD indicator in the oversold zone. This will limit the pair's downward potential and likely lead to an upward market reversal. Growth towards 1.3384 and 1.3415 can be expected.Sell Signal:
Scenario #1: I will sell the pound today after it reaches 1.3362 (marked by a red line on the chart), which will likely lead to a rapid decline in the pair. The key target for sellers will be 1.3333, where I will exit the trade and immediately open a buy order, expecting a 20-25 point reversal. Sellers will be more pronounced if U.S. statistics are strong. Important: Before selling, confirm that the MACD indicator is below zero and starting to decline.Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the 1.3384 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and prompt a downward market reversal. A decline towards 1.3362 and 1.3333 is expected.What's on the Chart:
Thin green line: Entry price for buying the trading instrument.Thick green line: Target price for setting Take Profit or manually securing profit, as further growth above this level is unlikely.Thin red line: Entry price for selling the trading instrument.Thick red line: Target price for setting Take Profit or manually securing profit, as further decline below this level is unlikely.MACD Indicator: It's crucial to monitor overbought and oversold zones when entering the market.Important Tips for Beginner Forex Traders: Exercise extreme caution when making market entry decisions. It is advisable to stay out of the market before the release of significant fundamental reports to avoid exposure to sudden price movements. If you decide to trade during news releases, always set stop-loss orders to minimize potential losses. Without stop-loss orders, you risk quickly depleting your entire deposit, especially if trading large volumes without employing proper money management strategies.
And remember, successful trading requires a clear and well-thought-out trading plan, like the one outlined above. Spontaneous trading decisions, based solely on current market conditions, are inherently disadvantageous for an intraday trader.