Transaction analysis and trading tips for the British pound
The test of the price at 1.2535 occurred at a time when the MACD indicator was beginning to move upwards from the zero mark, which confirmed the correct entry point for buying the pound, although I did not expect a strong rise in the pair. At the time of writing this article, the pair had only moved up about 7 points, which is all that buyers are capable of at the moment. In the second half of the day, data on the share of overdue mortgage payments in the US will not be of interest, so the chances of implementing the morning scenario #1 for buying remain. It is worth listening only to the speech of the Fed representative Loretta Mester, but her words are unlikely to lead to a strong surge in market volatility. As for the intraday strategy, I plan to act based on the implementation of scenarios #1 and #2.
Buy Signal
Scenario #1: Today, I plan to buy the pound when the entry point reaches around 1.2553 (green line on the chart), with a target of rising to the level of 1.2589 (thicker green line on the chart). At around 1.2589, 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). Today, pound growth can only be expected after weak statistics from the US. Important! Before buying, make sure that the MACD indicator is above the zero mark and only starting to rise from it.
Scenario #2: I also plan to buy the pound today in the event of two consecutive tests of the price at 1.2524, at a time when the MACD indicator is in the oversold zone. This will limit the downward potential of the pair and lead to a reversal of the market upwards. Expectations include a rise to the opposite levels of 1.2553 and 1.2589.
Sell Signal
Scenario #1: Today, I plan to sell the pound after updating the level of 1.2524 (red line on the chart), which will lead to a rapid decline in the pair. The key target for sellers will be the level of 1.2490, 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 show themselves in case of a lack of activity near the daily maximum. Important! Before selling, make sure that the MACD indicator is below the zero mark and only starting to decrease from it.
Scenario #2: I also plan to sell the pound today in the event of two consecutive tests of the price at 1.2553, at a time when the MACD indicator is in the overbought zone. This will limit the upward potential of the pair and lead to a reversal of the market downwards. Expectations include a decline to the opposite levels of 1.2524 and 1.2490.
Chart Information:
Thin green line - entry price at which the trading instrument can be bought;
Thick green line - expected price, where Take Profit can be set, or profit can be fixed independently, as further growth above this level is unlikely;
Thin red line - entry price, at which the trading instrument can be sold;
Thick red line - expected price, where Take Profit can be set, or profit can be fixed independently, 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 need to be very careful when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released 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 need to place stop orders to avoid losing your entire deposit, especially if you do not use money management and trade with large volumes.
Remember that for successful trading, it is necessary to have a clear trading plan similar to the one presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.
