Trade Analysis and Tips for Trading the British Pound
The price test at 1.3206 occurred when the MACD indicator began moving upward from the zero mark, confirming a correct entry point into the market. However, the pound did not show any upward movement, continuing to trade around the 1.3206 level for the rest of the day. US data limited the pair's upward potential but didn't significantly harm it. Today, there is again no data from the UK, so buyers will have a chance to continue the upward trend observed since the end of last week. As for the intraday strategy, I will rely more on the implementation of scenarios No. 1 and 2.
Buy Signal
Scenario No 1: Today, I plan to buy the pound upon reaching the entry point around 1.3212 (green line on the chart) with a target of rising to the level of 1.3242 (the thicker green line on the chart). Around the 1.3242 level, I plan to exit long positions and open short positions in the opposite direction (expecting a movement of 30-35 pips in the opposite direction from the entry point). The pound is expected to continue its upward trend, but a strong breakout of the daily high is necessary. Important! Before buying, ensure the MACD indicator is above the zero mark and starting its upward movement.
Scenario No 2: I also plan to buy the pound today if there are two consecutive tests of the 1.3191 price level when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to an upward market reversal. Growth can be expected to the opposite levels of 1.3212 and 1.3242.
Sell Signal
Scenario No 1: Today, I plan to sell the pound after testing the 1.3191 level (red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the 1.3161 level, where I plan to exit short positions and immediately open longs in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Selling the pound is only advisable after a failed attempt to consolidate around the daily high. Important! Before selling, make sure the MACD indicator is below the zero mark and just beginning its downward movement.
Scenario No 2: I also plan to sell the pound today if there are two consecutive tests of the 1.3212 price level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected to the opposite levels of 1.3191 and 1.3161.
What's on the Chart:
Thin green line: the entry price at which you can buy the trading instrument.
Thick green line: the estimated price at which you can set Take Profit or manually secure profits, as further growth above this level is unlikely.
Thin red line: the entry price at which you can sell the trading instrument.
Thick red line: an estimated price at which you can set Take Profit or manually secure profits, as further decline below this level is unlikely.
MACD indicator: when entering the market, it is essential to be guided by overbought and oversold zones.
Important: Novice traders in the forex market must be very cautious when deciding to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid sharp price fluctuations. If you choose to trade during news releases, always set 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.
Remember, a clear trading plan, like the one I've outlined, is essential for successful trading. Making impulsive decisions based on the current market situation is a losing strategy for novice intraday traders.
