Analysis of Trades and Trading Tips for the British Pound
The test of the 1.3069 price level occurred when the MACD indicator had just started to move down from the zero line, confirming the correct entry point to sell the pound. However, as seen on the chart, no decline followed, resulting in losses. Yesterday's UK Halifax House Price Index report and the speeches from Federal Reserve representatives helped the pound maintain its position. Range-bound trading will likely continue today, as there is no significant UK data or speeches from British politicians, which will undoubtedly affect market volume and volatility. I will focus on implementing scenarios #1 and #2 for today's intraday strategy.
Buy Signal
Scenario #1: I plan to buy the pound today upon reaching the entry point around 1.3096 (green line on the chart) with a target for growth to 1.3129 (thicker green line on the chart). At the 1.3129 level, I plan to exit the buy position and open a sell trade in the opposite direction (expecting a move of 30-35 pips from the level). You can count on the pound's growth only within a correction. Important: Before buying, ensure the MACD indicator is above the zero line and starting its upward movement.
Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.3075 price level when the MACD indicator is in the oversold zone. This will limit the pair's downward potential and lead to an upward reversal. Growth to the opposite levels of 1.3096 and 1.3129 can be expected.
Sell Signal
Scenario #1: I plan to sell the pound today after breaking below the 1.3075 level (red line on the chart), which should lead to a quick decline in the pair. The key target for sellers will be 1.3041, where I plan to exit the sell position and open a buy trade in the opposite direction (expecting a move of 20-25 pips from the level). You can sell the pound as part of the continuing bearish trend. Important: Before selling, ensure the MACD indicator is below the zero line and just starting its downward movement.
Scenario #2: I also plan to sell the pound today in the event of two consecutive tests of the 1.3096 price level when the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a reversal downward. A decline to the opposite levels of 1.3075 and 1.3041 can be expected.
What's on the Chart:
Thin green line: Entry price at which you can buy the trading instrument.
Thick green line: The anticipated price where you can set Take Profit or manually lock in profits, as further growth above this level is unlikely.
Thin red line: Entry price at which you can sell the trading instrument.
Thick red line: The anticipated price where you can set Take Profit or manually lock in 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 traders in the forex market should be cautious when making market entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden exchange rate fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. You can quickly lose your entire deposit without stop orders, especially if you do not use money management and trade in large volumes.
And remember, for successful trading, you need to have a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.
