Analysis of Trades and Trading Tips for the British Pound

The test of the 1.3165 price level occurred when the MACD indicator had already moved significantly below the zero mark, which limited the pound's downward potential. For this reason, I did not sell and remained out of the market. The data from the UK was not particularly encouraging, which led to another sell-off of the pair that I unfortunately missed. In the second half of the day, reports on the U.S. Services PMI and Composite PMI for September could increase pressure on the pound, but the figures would need to exceed economists' forecasts, which is unlikely. The speeches from FOMC members Raphael Bostic and Neel Kashkari are also worth paying attention to. A dovish tone from policymakers could weaken the dollar and cause a corrective rise in the pound following the significant sell-off earlier in the day. Regarding the intraday strategy, I plan to act according to Scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound upon reaching the entry point around 1.3126 (green line on the chart) with the target of rising to 1.3154 (thicker green line on the chart). At 1.3154, I will exit the long positions and open short positions in the opposite direction, aiming for a 30-35 point move downward from that level. A rise in the pound today can only be expected after weak U.S. data. Important: Before buying, ensure that the MACD indicator is above the zero mark and just beginning its upward movement.

Scenario #2: I also plan to buy the pound today if there are two consecutive tests of the 1.3104 price level, with the MACD indicator in the oversold area. This will limit the pair's downward potential and lead to an upward reversal. We can expect a rise to the opposite levels of 1.3126 and 1.3154.

Sell Signal

Scenario #1: I plan to sell the pound today after the price drops below 1.3104 (red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be the 1.3070 level, where I will exit the short positions and open long positions in the opposite direction, aiming for a 20-25 point rebound from that level. Sellers are likely to emerge if U.S. economic data is strong. Important: Before selling, ensure that the MACD indicator is below the zero mark and just beginning its downward movement.

Scenario #2: I also plan to sell the pound today if there are two consecutive tests of the 1.3126 level, with the MACD indicator in the overbought area. This will limit the pair's upward potential and cause a downward reversal. We can expect a decline to the opposite levels of 1.3104 and 1.3070.

Chart Breakdown:

• Thin green line – the entry price at which you can buy the trading instrument.
• Thick green line – the projected 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 projected price where you can set Take Profit or manually lock in profits, as further decline below this level is unlikely.
• MACD Indicator: It is important to use the overbought and oversold zones when entering the market.

Important: Beginner traders in the forex market need to be very cautious when making decisions about market entry. Before the release of important fundamental reports, it is best to stay out of the market to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you're trading large volumes without proper money management.

It is important to remember that successful trading requires a clear trading plan, such as the one presented above. Making spontaneous trading decisions based on the current market situation is, by nature, a losing strategy for an intraday trader.