Analysis of Trades and Trading Tips for the British Pound

The test of the price at 1.3439 occurred when the MACD indicator was beginning to move upward from the zero mark, which confirmed the correct entry point for buying the pound. As a result, the pair rose towards the target level of 1.3469.

The dollar lost considerable ground after the increased likelihood of further interest rate cuts from the Federal Reserve of the United States, along with positive data on UK GDP growth and investment. The market is now waiting for further signals from Fed officials to better assess the future trajectory of monetary policy. Any hints at a more aggressive rate cut could further weaken the US currency.

Today, due to the lack of fresh economic data from the UK, those betting on a decline in the pound's value will have no significant catalysts for activity. The British currency, having a good domestic guide following yesterday's data, may continue to rise against the dollar. However, without strong internal impulses for a significant upward movement, it is unlikely to materialize. In the prevailing circumstances, it is critically important for the pound to hold above the main support levels. Breaking these levels could initiate a new phase of sell-offs and lead to a decline in the exchange rate.

Regarding the intra-day strategy, I will focus more on implementing scenarios #1 and #2.

Buy Scenarios

• Scenario #1: Today, I plan to buy the pound if it reaches the entry point around 1.3494 (green line on the chart), with a target for growth to the level of 1.3520 (thicker green line on the chart). At 1.3520, I intend to exit my long positions and open a short position immediately on a bounce (targeting a 30-35-pip move in the opposite direction from this level). Expectations for a strong rise in the pound today are limited. Important! Before buying, ensure that the MACD indicator is above the zero mark and just beginning its rise from it.
• Scenario #2: I also plan to buy the pound today if the price tests 1.3480 twice in a row while the MACD indicator is oversold. This will limit the pair's downward potential and lead to a market reversal upwards. Growth may be expected towards the opposite levels of 1.3494 and 1.3520.

Sell Scenarios

• Scenario #1: I plan to sell the pound today after the 1.3480 level is updated (red line on the chart), which will trigger a rapid decline in the pair. The key target for sellers will be the level of 1.3458, where I plan to exit my short positions and open long positions immediately in the opposite direction (targeting a movement of 20-25 pips in the opposite direction from this level). Sellers of the pound may manifest themselves within the framework of a correction. Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting its decline from it.
• Scenario #2: I also plan to sell the pound today if there are two consecutive tests of 1.3494 when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downwards. Expect a decline towards the opposite levels of 1.3480 and 1.3458.

Chart Annotations:

• Thin Green Line: Entry price where you can buy the trading instrument.
• Thick Green Line: Estimated price where you can set Take Profit or fix profits, as further growth above this level is unlikely.
• Thin Red Line: Entry price where you can sell the trading instrument.
• Thick Red Line: Estimated price where you can set Take Profit or fix profits, as further decline below this level is unlikely.
• MACD Indicator: It is important to follow the overbought and oversold zones when entering the market.

Important Notes:

Beginner traders in the Forex market should make very cautious decisions regarding market entry. It is best to stay out of the market before major fundamental reports to avoid getting caught in sharp price 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 do not use money management and trade large volumes.

Remember that successful trading requires a clear trading plan, as presented above. Making spontaneous trading decisions based on the current market situation is initially a losing strategy for intraday traders.