Analysis of Trades and Trading Tips for the British Pound

The test of the 1.3595 level occurred just as the MACD indicator began moving upward from the zero line, confirming a valid buy entry for the pound, which resulted in a 20-pip rise.

The absence of important U.S. data did not lead to a strong pound rally during the day's second half. Toward the close, however, pressure on the GBP/USD pair increased more significantly. Most likely, concerns about the potential escalation of geopolitical tensions between Israel and Iran played a key role. From a technical standpoint, the break of key support levels may also have triggered increased bearish sentiment.

No significant macroeconomic reports from the UK are scheduled today, which may provide pound buyers with another opportunity for modest strengthening in the first half of the trading session. However, it's important to remember that the absence of news doesn't guarantee sustained growth. For example, the pound's rise may be supported by U.S. dollar weakness or positive developments from other regions. Additional upward momentum may come from technical factors, such as the breakout of key resistance levels. Overall, the outlook appears favorable for GBP/USD strengthening, but to confirm a bullish trend, the pair must overcome several important resistance zones. A successful breakout would open the path for further gains; otherwise, consolidation or a correction may follow.

For intraday strategy, I will focus primarily on Scenarios #1 and #2.

Buy Scenario

Scenario #1: I plan to buy the pound today at the entry point around 1.3583 (green line on the chart), with a target of rising to 1.3634 (thicker green line). At 1.3634, I plan to exit long positions and open short positions, targeting a 30–35 pip reversal from that level.

Important: Before buying, ensure the MACD indicator is above the zero line and just beginning to rise.

Scenario #2: I also plan to buy the pound today in the event of two consecutive tests of the 1.3559 level while the MACD is in the oversold zone. This will limit the pair's downside potential and trigger a reversal to the upside. A rise toward 1.3583 and 1.3634 may be expected.

Sell Scenario

Scenario #1: I plan to sell the pound after a break below 1.3559 (red line on the chart), which should trigger a quick decline. The main target for sellers will be 1.3511, where I will close short positions and immediately consider buying on the bounce, aiming for a 20–25 pip retracement.

Important: Before selling, ensure the MACD is below the zero line and beginning to decline.

Scenario #2: I plan to sell the pound today if the 1.3583 level is tested twice while the MACD is in the overbought zone. This would limit the pair's upside potential and lead to a downward reversal. A decline toward 1.3559 and 1.3511 is expected.

What's on the Chart:

• The thin green line represents the entry price where the trading instrument can be bought.
• The thick green line indicates the expected price level where a Take Profit order can be placed, or profits can be manually secured, as further price growth above this level is unlikely.
• The thin red line represents the entry price where the trading instrument can be sold.
• The thick red line indicates the expected price level where a Take Profit order can be placed, or profits can be manually secured, as further price decline below this level is unlikely.
• The MACD indicator should be used to assess overbought and oversold zones when entering the market.

Important Notes:

• Beginner Forex traders should exercise extreme caution when making market entry decisions. It is advisable to stay out of the market before the release of important fundamental reports to avoid exposure to sharp price fluctuations. If you choose to trade during news releases, always use stop-loss orders to minimize potential losses. Trading without stop-loss orders can quickly wipe out your entire deposit, especially if you neglect money management principles and trade with high volumes.
• Remember, successful trading requires a well-defined trading plan, similar to the one outlined above. Making impulsive trading decisions based on the current market situation is a losing strategy for intraday traders.