Analysis of Trades and Trading Tips for the British Pound

The test of the 1.2946 price level occurred when the MACD indicator started to move down from the zero mark, which, within the framework of the downtrend, confirmed a correct entry point for selling the pound. As a result, the pair dropped to the target area of 1.2908, allowing for a profit of around 40 pips. Buying on the rebound from 1.2908, as I mentioned in my forecast, brought in about 20 more pips. Today, the pound might rise, supported by positive UK Manufacturing PMI, Services PMI, and Composite PMI data. However, the figures must exceed economists' forecasts; otherwise, pressure on the pair will remain. As for the intraday strategy, I will focus more on implementing scenarios #1 and #2.

Buy Signal

Scenario #1: I plan to buy the pound today when the entry point at 1.2945 is reached (green line on the chart), with a target of rising to 1.2981 (thicker green line on the chart). Around 1.2981, I plan to exit buys and open sell positions in the opposite direction (aiming for a movement of 30-35 pips downward from this level). A rise in the pound today can be expected only after strong PMI data. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.2923 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. A rise towards the opposite levels of 1.2945 and 1.2981 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound today after the 1.2923 level is broken (red line on the chart), which should lead to a quick drop in the pair. The key target for sellers will be 1.2894, where I plan to exit sell positions and open buys in the opposite direction (expecting a movement of 20-25 pips upward from this level). Selling the pound is advisable only if the data is weak. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline.

Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the 1.2945 price 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 1.2923 and 1.2894 can be expected.

What's on the Chart:

Thin Green Line: The entry price at which the trading instrument can be bought.

Thick Green Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further growth above this level is unlikely.

Thin Red Line: The entry price for selling the trading instrument.

Thick Red Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further declines below this level are unlikely.

MACD Indicator: Considering overbought and oversold zones is crucial when entering the market.

Important Note for Beginners:

Novice traders in the Forex market must be cautious when making market entry decisions. It is best to stay out of the market before the release of major fundamental reports to avoid getting caught in sharp price movements. If you decide to trade during news releases, always set stop-loss orders to minimize losses. You can quickly lose your entire deposit without stop-loss orders, especially if you do not use money management and trade with large volumes.

And remember, successful trading requires a clear trading plan, like the one I've presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.