Analysis of transactions and tips on trading the British pound
The first test of the price of 1.2705 came at a time when the MACD was starting to move down from zero, which was a confirmation of the scenario for selling the pound further in continuation of Friday's trend. As a result, the pair declined by 15 points. In the afternoon, there are no statistics on the United States, so, at the very beginning of American trading, the pressure on the pound may weaken, which will lead to a slight upward correction of the pair. But do not write off sellers who are just waiting for this. Closing the day below 1.2700 will be a reason to increase short positions in the continuation of the downward trend in the first half of this week. As for the intraday strategy, I plan to act based on the implementation of scenarios No. 1 and No. 2.
Buy signal
Scenario No. 1: I plan to buy the pound today when I reach the entry point in the area of 1.2711 (green line on the chart) in order to grow to the level of 1.2761 (thicker green line on the chart). In the area of 1.2761, I will exit purchases and open sales in the opposite direction (counting on a movement of 30-35 points in the opposite direction from the level). The growth of the pound today can be counted on only within the framework of a small upward correction. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting to grow from it.
Scenario No. 2: I also plan to buy the pound today in the case of two consecutive price tests of 1.2687 at a time when the MACD indicator will be in the oversold area. This will limit the pair's downward potential and lead to a reverse upward reversal of the market. We can expect growth to the opposite levels of 1.2711 and 1.2761.
Sell signal
Scenario No. 1: I plan to sell the pound today after updating the 1.2687 level (the red line on the chart), which will lead to a rapid decline in the pair. The key target of sellers will be the 1.2647 level, where I will exit sales, as well as immediately open purchases in the opposite direction (counting on a movement of 20-25 points in the opposite direction from the level). Sellers will prove themselves in case of unsuccessful attempts to return to the daily maximum. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just beginning to fall from it.
Scenario No. 2: I also plan to sell the pound today in the case of two consecutive price tests of 1.2711 at a time when the MACD indicator will be in the overbought area. This will limit the pair's upward potential and lead to a reverse downward reversal of the market. We can expect a decline to the opposite levels of 1.2687 and 1.2647.
What's on the chart:
Thin green line is the entry price at which you can buy a trading instrument.
Thick green line is the estimated price where you can place Take profit or fix profits yourself, since further growth is unlikely above this level.
Thin red line is the entry price at which a trading instrument can be sold.
Thick red line is the estimated price at which you can place a Take profit or fix profits yourself since further decline is unlikely below this level.
MACD indicator. When entering the market, it is important to be guided by overbought and oversold zones.
Important. Novice forex traders need to make decisions about entering the market very carefully. Before the release of important fundamental reports, it is best to stay out of the market to avoid sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place stop orders to minimize losses. You need to place stop orders to avoid losing the entire deposit very quickly, especially if you do not use money management but trade in large volumes.
Remember that for successful trading, you need a clear trading plan, following the example I presented above. Making spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.
