Trade Analysis and Tips for Trading the British Pound

The price test at the 1.3384 level coincided with a moment when the MACD indicator had moved quite far above the zero mark, limiting the pair's upward potential. For this reason, I didn't buy the pound and missed a slight upward movement of about 20 pips. Closer to the middle of the US session, the test of the 1.3362 level happened when the MACD indicator was already quite far from the zero line, which also prevented me from entering a sell position on the pound. As a result, I ended up with no trades at all. Once again, no significant economic data is expected from the UK during today's European trading session, so the GBP/USD pair may continue its downward movement within yesterday's bearish trend. Regarding my intraday strategy, I will rely more on executing scenarios Nos. 1 and 2 to continue strengthening the GBP.

Buy Signal

Scenario No 1: I plan to buy the pound today upon reaching the entry point around 1.3354 (green line on the chart) with a target to rise to the level of 1.3375 (thicker green line on the chart). Around 1.3375, I intend to exit purchases and open sales in the opposite direction (expecting a move of 30-35 pips in the opposite direction from this level). You can further anticipate a drop in the pound as bearish sentiments develop. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario No 2: I also plan to buy the pound today if there are two consecutive tests of the 1.3335 level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. An increase can be expected towards the opposite levels of 1.3354 and 1.3375.

Sell Signal

Scenario No 1: I plan to sell the pound today after breaking the 1.3335 level (red line on the chart), which will lead to a rapid decline of the pair. The key target for sellers will be the level of 1.3310, where I plan to exit sales and immediately open purchases in the opposite direction (expecting a move of 20-25 pips in the opposite direction from this level). You can continue selling the pound, betting on the continuation of yesterday's trend. Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting to decline.

Scenario No 2: I also plan to sell the pound today in case of two consecutive tests of the 1.3354 level 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 towards the opposite levels of 1.3335 and 1.3310 can be expected.

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 where you can set Take Profit or manually lock in 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: The estimated price at which 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's important to be guided by overbought and oversold zones.

Important: Beginner forex traders must make market entry decisions cautiously. It's best to stay out of the market before the release of significant fundamental reports to avoid sharp fluctuations in exchange rates. If you choose to trade during news releases, always set stop orders to minimize losses. Without using stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

And remember, to trade successfully, you need a clear trading plan, similar to the example I've presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.