Trade Analysis and Tips for Trading the British Pound

The price test at 1.3215 occurred when the MACD indicator had moved significantly below the zero mark, limiting the pair's downward potential. For this reason, I did not sell the pound. I did not wait for other entry points into the market.

Today, there are no reports from the UK, so trading will likely remain within the sideways channel formed last week. The absence of fresh economic data means the market will act with inertia, relying on past trends and overall sentiment, which, as we know, is against the British pound.

Market participants will likely also be paying close attention to indirect signals from other countries, including the Middle East, where the Strait of Hormuz reopened this weekend, providing a glimmer of hope for achieving full peace between the U.S. and Iran.

Regarding the intraday strategy, I will primarily rely on the implementation of scenarios No. 1 and No. 2.

Buy Scenarios

Scenario No. 1: I plan to buy pounds today at an entry point around 1.3225 (green line on the chart), with the goal of reaching 1.3281 (thicker green line on the chart). Around 1.3281, I plan to exit the long positions and open short positions in the opposite direction (targeting a movement of 30-35 pips in the opposite direction from the level). One can only expect the pound to rise today within the confines of the channel. Important! Before buying, ensure that the MACD indicator is above the zero mark and is just starting to rise from it.

Scenario No. 2: I also plan to buy pounds today in the event of two consecutive tests of the price at 1.3195, while the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. One can expect growth to the opposite levels of 1.3225 and 1.3281.

Sell Scenarios

Scenario No. 1: I plan to sell the pound today after the 1.3195 level is updated (red line on the chart), which will lead to a swift decline in the pair. The key target for sellers will be the level of 1.3144, where I plan to exit the shorts and also open longs immediately in the opposite direction (targeting a movement of 20-25 pips in the opposite direction from the level). Bad news will increase pressure on the pound. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario No. 2: I also plan to sell pounds today in the event of two consecutive tests of the price at 1.3225, while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. One can expect a decline to the opposite levels of 1.3195 and 1.3144.

What's on the Chart:

Thin green line – entry price for buying the trading instrument;

Thick green line – presumed price level for placing Take Profit or manually securing profits, as further growth above this level is unlikely;

Thin red line – entry price for selling the trading instrument;

Thick red line – presumed price level for placing Take Profit or manually securing profits, as further decline below this level is unlikely;

MACD Indicator. When entering the market, it is important to consider the overbought and oversold zones.

Important: Beginner traders in the Forex market must be very cautious when making entry decisions. Before major fundamental reports are released, it is best to stay out of the market to avoid being caught in sharp fluctuations. If you decide 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 are not using money management and are trading large volumes.

And remember, for successful trading, you need a clear trading plan similar to the one presented above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for intraday traders.