Analysis of Trades and Tips for Trading the British PoundTesting the price at 1.2751 coincided with the moment when the MACD indicator was starting to move upward from the zero mark, confirming the correct entry point for buying the pound. However, the pair did not experience significant growth. Low trading volume and low volatility in the second half of the day will likely result in trading within the channel, making strong price movements unlikely. Considering that there are no U.S. statistics today, it is better to trade from local highs and lows in opposite directions. As for the intraday strategy, I plan to act based on Scenario 2.
Buy SignalScenario 1: Today, I plan to buy the pound at the entry point around 1.2770 (green line on the chart) with the target of rising to 1.2806 (thicker green line on the chart). Around 1.2806, I will exit purchases and open sales in the opposite direction (aiming for a 30-35 point movement in the opposite direction from the level). The pound's growth today can only be expected after breaking the daily high. Important! Before buying, make sure that the MACD indicator is above the zero mark and that it is just starting its upward movement.Scenario 2: I also plan to buy the pound today in the event of two consecutive tests of the price at 1.2733 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Growth to the opposite levels of 1.2770 and 1.2806 can be expected.Sell SignalScenario 1: Today, I plan to sell the pound after the level of 1.2733 (red line on the chart) is updated, which will lead to a quick decline in the pair. The key target for sellers will be the level of 1.2697, where I will exit sales and immediately open purchases in the opposite direction (aiming for a 20-25 point movement in the opposite direction from the level). Sellers will become active after failing to hold around the daily high. Important! Before selling, make sure that the MACD indicator is below the zero mark and that it is just starting its downward movement.Scenario 2: I also plan to sell the pound today if the price at 1.2770 is tested twice consecutively when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the opposite levels of 1.2733 and 1.2697 can be expected.What the Chart Shows:Thin green line: Entry price for buying the trading instrument.Thick green line: Target price for placing Take Profit or manually fixing profits, as further growth above this level is unlikely.Thin red line: Entry price for selling the trading instrument.Thick red line: Target price for placing Take Profit or manually fixing profits, as further decline below this level is unlikely.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 falling into sharp fluctuations in the exchange rate. 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 large volumes.And remember, successful trading requires a clear trading plan, like the one I presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.
