Overview of trading and tips on GBP/USD
The price tests I mentioned did not occur in the afternoon. As a result, getting suitable signals for entering the market was impossible. The lack of UK data, with traders ignoring the report on the Confederation of British Industry's industrial trends orders, affected the pound, which continued to lose ground after the strong U.S. GDP data. Today, the UK economic calendar is empty, so the pair will remain under pressure until the next batch of strong U.S. data is released. As for the intraday strategy, I will rely more on implementing scenarios No. 1 and 2.
Buy signals
Scenario No 1. Today, I plan to buy the pound when the price reaches the entry point around 1.2872 plotted by the green line on the chart, with the goal of rising to the level of 1.2907 plotted by the thicker green line on the chart. Around 1.2907, I plan to exit long positions and sell the pound in the opposite direction, counting on a movement of 30-35 pips from the level. It is unlikely that it will be possible to count on a solid rise in the first half of the day. At most, we will see a minor correction after a sell-off in the Asian session. Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario No 2. I also plan to buy the pound today in case of two consecutive tests of the price at 1.2852 when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reverse market upturn. One can expect growth to the opposite levels of 1.2872 and 1.2907.
Sell signals
Scenario No 1. Today, I plan to sell the pound after testing the level of 1.2852 plotted by the red line on the chart, which will lead to a rapid decline in GBP/USD. The key target for sellers will be 1.2818, where I am going to close short positions and also open long positions in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from that level). You can sell the pound if buyers are not active near the intraday high. Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.
Scenario No 2. I also plan to sell the pound today in case of two consecutive price tests of 1.2872 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a reverse market downturn. One can expect a decline to the opposite levels of 1.2852 and 1.2818.
What's on the chart:
The thin green line is the entry price at which you can buy the trading instrument.
The thick green line is the estimated price where you can set Take-Profit (TP) or manually close positions, as further growth above this level is unlikely.
The thin red line is the entry price at which you can sell the trading instrument.
The thick red line is the price where you can set Take-Profit (TP) or manually close positions, as further decline below this level is unlikely.
MACD line: it is important to be guided by overbought and oversold areas when entering the market
Important: Novice 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 getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade in large volumes.
And remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.
