Analysis of Trades and Trading Tips for the British Pound
The test of the 1.3039 level coincided with the MACD indicator's significant move down from the zero line, which, in my view, limited the pair's downward potential. For this reason, I did not sell the pound and missed out on a proper downward movement. The pair fell just short of testing the 1.3011 level. As a result, I couldn't catch the movement on a rebound either. The only notable event in the second half of the day is the US Leading Indicators Index, which is unlikely to trigger significant volatility, so all that's left is to listen to interviews with Federal Reserve representatives Lorie K. Logan and Neel Kashkari. It is likely that they won't offer anything new, so I expect continued trading within a sideways range. Regarding the intraday strategy, I plan to prioritize the implementation of scenarios #1 and #2.
Buy Signal
Scenario #1: I plan to buy the pound today if it reaches the entry point near 1.3035 (green line on the chart), aiming for a rise to 1.3070 (thicker green line on the chart). At 1.3070, I will exit purchases and open sales in the opposite direction (targeting a 30-35 point movement in the opposite direction from the level). A rise in the pound today can only be expected if the US data is weak. Important: Before buying, confirm that the MACD indicator is above the zero line and just beginning to rise from it.
Scenario #2: I also plan to buy the pound today if the price tests the 1.3010 level twice consecutively while the MACD indicator shows oversold conditions. This will limit the pair's downward potential and may prompt an upward reversal. A rise towards the resistance levels of 1.3035 and 1.3070 can be expected.
Sell Signal
Scenario #1: I plan to sell the pound today after breaking below the 1.3010 level (red line on the chart), which could lead to a quick decline in the pair. The key target for sellers will be 1.2985, where I will exit sales and immediately open purchases in the opposite direction (targeting a 20-25 point movement upward from this level). Sellers are likely to reassert themselves if the pair fails to consolidate around 1.3035. Important: Before selling, confirm that the MACD indicator is below the zero line and just beginning to fall from it.
Scenario #2: I also plan to sell the pound today if the price tests the 1.3035 level twice consecutively while the MACD indicator shows overbought conditions. This will limit the pair's upward potential and could lead to a downward reversal. A decline towards the support levels of 1.3010 and 1.2985 can be expected.
What's on the Chart:
Thin green line – the entry price where you can buy the trading instrument.Thick green line – the estimated price where you can set a Take Profit or manually lock in profits, as further growth above this level is unlikely.Thin red line – the entry price where you can sell the trading instrument.Thick red line – the estimated price where you can set a Take Profit or manually lock in profits, as further decline below this level is unlikely.MACD Indicator: When entering the market, it is important to consider overbought and oversold zones.Important: Beginner traders in the Forex market should make entry decisions very cautiously. It is best to stay out of the market before the release of major fundamental reports, to avoid sudden price swings. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you can quickly lose your entire deposit, especially if you do not use money management and trade in large volumes.
Remember that successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is generally a losing strategy for an intraday trader.