Analysis of Trades and Trading Tips for the British Pound

The test of the 1.2974 level occurred when the MACD indicator had moved significantly above the zero line, which limited the pair's upward potential. For this reason, I didn't buy the pound and instead waited for Scenario #2, which was to sell. The second test occurred shortly afterward, when the MACD was in the overbought zone and seemed like an ideal buying opportunity, so I took it. However, due to strong UK PMI data, the pound continued to rise, resulting in a small loss. In the second half of the day, we expect ISM services activity and U.S. composite PMI data for October, as well as the trade balance. These figures are unlikely to make a significant market impact, as attention is focused on the presidential election. For this reason, I anticipate trading within a sideways range. Regarding the intraday strategy, I'll rely more on the implementation of Scenarios #1 and #2.

Buy Signal

Scenario #1: Today, I plan to buy the pound if it reaches the entry level near 1.2995 (green line on the chart) with a target of 1.3036 (thicker green line on the chart). Around 1.3036, I plan to exit purchases and open short positions in the opposite direction, aiming for a reversal of 30–35 points. The pound's growth today may depend on weak U.S. data. Important: Before buying, ensure that the MACD indicator is above the zero line and just beginning to rise from it.

Scenario #2: I also plan to buy the pound if there is a double test of the 1.2973 level, with the MACD indicator in the oversold area. This should limit the pair's downward potential and prompt an upward market reversal. A rise to the levels of 1.2995 and 1.3036 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound after it breaks the 1.2973 level (red line on the chart), which should lead to a quick decline. The key target for sellers will be 1.2938, where I intend to exit short positions and immediately open long positions, aiming for a reversal of 20–25 points from that level. Sellers are likely to be active in response to strong U.S. economic reports. Important: Before selling, ensure that the MACD indicator is below the zero line and just beginning to fall from it.

Scenario #2: I also plan to sell the pound if there is a double test of the 1.2995 level, with the MACD indicator in the overbought area. This should limit the pair's upward potential and prompt a downward market reversal. A decline to the levels of 1.2973 and 1.2938 can be expected.

Chart Guide:

• Thin green line – Entry level for buying the asset.
• Thick green line – Expected level where you can set Take Profit or lock in profit independently, as further growth above this level is unlikely.
• Thin red line – Entry level for selling the asset.
• Thick red line – Expected level where you can set Take Profit or lock in profit independently, as further decline below this level is unlikely.
• MACD Indicator – Use overbought and oversold areas as guidance for entering the market.

Important: Beginner traders in the Forex market should make entry decisions with great caution. It's best to stay out of the market before major fundamental reports are released to avoid sharp price fluctuations. If you choose to trade during news releases, always set stop orders to manage potential losses. Without stop orders, you risk quickly losing your entire deposit, especially if trading large volumes without proper money management.

It is essential to have a clear trading plan for success, as illustrated above. Spontaneous trading decisions based solely on immediate market situations are generally unprofitable for intraday traders.