Trade Analysis and Recommendations for the British Pound

The first test of the price at 1.3328 occurred when the MACD indicator had already moved significantly down from the zero mark, which limited the downside potential of the pair. The second test of 1.3328 shortly thereafter took place while the MACD was in the oversold area, allowing scenario No. 2 for buying the pound to be realized. As a result, the pair only rose by 10 pips.

There is no fundamental data for the UK today, so the pound has every chance to continue its correction. The absence of macroeconomic data generally provides currencies with maneuverability, allowing them to move under the influence of technical factors, market sentiment, and speculative flows. In the current situation, a favorable combination of these elements may support further strengthening of the British currency observed since yesterday. Technical analysis indicates potential for continued growth of the pound. Holding key support levels this week has created momentum for buyers, and it seems they intend to capitalize on the lack of fundamental news to strengthen their positions.

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

Buy Scenarios

Scenario No. 1: I plan to buy the pound today upon reaching the entry point around 1.3375 (green line on the chart), targeting a move to 1.3407 (thicker green line on the chart). Around 1.3407, I plan to exit my purchases and immediately sell in the opposite direction (expecting a movement of 30-35 pips from the entry point). The pound's growth today can be expected to continue the correction. Important! Before buying, ensure that the MACD indicator is above the zero mark and is just beginning to rise from it.

Scenario No. 2: I also plan to buy the pound today if there are two consecutive tests of 1.3355 when the MACD indicator is in the oversold area. This will limit the downside potential of the pair and lead to an upward market reversal. One can expect growth towards the opposite levels of 1.3375 and 1.3407.

Sell Scenarios

Scenario No. 1: I plan to sell the pound today after it breaches 1.3355 (red line on the chart), which will trigger a rapid decline in the pair. The key target for sellers will be the 1.3322 level, where I plan to exit my sales and immediately buy in the opposite direction (expecting a move of 20-25 pips from the level). Pound sellers will return after updating local highs. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just beginning to decline from it.

Scenario No. 2: I also plan to sell the pound today if there are two consecutive tests of 1.3375 when the MACD indicator is in the overbought area. This will limit the upside potential of the pair and lead to a market reversal downwards. One can expect a decline towards the opposite levels of 1.3355 and 1.3322.

What's on the Charts:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Estimated price for setting Take Profit or manually securing profits since further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Estimated price for setting Take Profit or manually securing profits since further decline below this level is unlikely.
• MACD Indicator: It is important to be guided by overbought and oversold zones when entering the market.

Important: Beginner traders in the Forex market need to make entry decisions very cautiously. It is best to stay out of the market before important fundamental reports to avoid sudden fluctuations. If you choose 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 employ money management and trade in large volumes.

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