Analysis of Deals and Trading Tips for the British Pound
The price test at 1.2448 in the first half coincided with the moment of the MACD indicator's upward movement from the zero mark, which confirmed the correct entry point for buying the pound to continue the pair's growth observed after the release of fundamental data on the UK. As a result, the pound rose by 20 points, and that was all. News that inflation in the UK turned out worse than economists' forecasts triggered purchases of the pound, but a significant upward surge against the trend did not occur, although it might happen – everything will depend on market sentiment against the backdrop of the absence of important statistics from the US. Usually, it goes like this: no statistics, movement, or movement continues toward the morning trend. As for the intraday strategy, I will rely more on scenarios #1 and #2.
Buy Signal
Scenario #1: I plan to buy the pound today when reaching the entry point around 1.2471 (green line on the chart) to rise to 1.2505 (thicker green line on the chart). I will exit purchases around 1.2505 and open sales in the opposite direction (counting on a movement of 30-35 pips in the opposite direction from the level). Today, the pound's rise can be expected to continue the morning trend, but be cautious about buying against the trend. 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 1.2445 when the MACD indicator is in the oversold area. 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 1.2471 and 1.2505.
Sell Signal
Scenario #1: I plan to sell the pound today after updating the 1.2445 (red line on the chart), leading to a rapid decline in the pair. The key target for sellers will be the level of 1.2416, where I will exit sales and open purchases in the opposite direction (counting on a movement of 20-25 pips in the opposite direction from the level). Sellers will show themselves against the backdrop of the absence of buyer activity around the daily maximum, similar to yesterday. 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 1.2471 when the MACD indicator is in the overbought area. 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 1.2445 and 1.2416.
What's on the chart:
Thin green line – entry price, at which you can buy the trading instrument.
Thick green line – the presumed price where you can set Take Profit or independently fix profits, as further growth above this level is unlikely.
Thin red line – entry price, at which you can sell the trading instrument.
Thick red line – the presumed price where you can set Take Profit or independently fix profits, as further decline below this level is unlikely.
MACD indicator. When entering the market, using overbought and oversold zones is important.
Important. Beginner traders in the forex market must be very careful when deciding to enter the market. It is best to stay out of the market before important fundamental reports 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 must place stop orders to lose your entire deposit quickly, especially if you do not use money management and trade in large volumes.
And remember, successful trading requires a clear trading plan, like the one I presented above. Spontaneous decision-making based on the current market situation is initially a losing strategy for an intraday trader.
