Trade Review and Tips for Trading the British Pound

The test of the 1.3575 level in the first half of the day occurred when the MACD indicator had already risen significantly above the zero line, which limited the pair's upward potential.

As for the Empire Manufacturing Index: I don't think this indicator will have any serious impact on the market. In fact, Empire Manufacturing data is generally local in its influence. It serves more as an indicator of the current state of manufacturing activity in New York State than a decisive factor for the global currency market. In the context of broader economic forces—such as inflation, Federal Reserve interest rate policy, and the general macroeconomic environment in the U.S.—this index plays a secondary role. Meanwhile, geopolitical tensions, on the other hand, are capable of turning markets upside down within minutes.

Regarding intraday strategy, I will primarily rely on the implementation of scenarios #1 and #2.

Buy Signal

Scenario #1: I plan to buy the pound today upon reaching the entry point around 1.3595 (green line on the chart) with the goal of rising to the 1.3648 level (thicker green line on the chart). At around 1.3648, I plan to exit buy positions and open sales in the opposite direction (expecting a 30–35 point move downward). A rise in the pound today can be expected as part of the ongoing upward daily trend. Important! Before buying, make sure the MACD indicator is above the zero line and just starting to rise from it.

Scenario #2: I also plan to buy the pound today in the case of two consecutive tests of the 1.3571 price level while the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reversal upward. A rise toward the opposite levels of 1.3595 and 1.3648 can be expected.

Sell Signal

Scenario #1: I plan to sell the pound today after a break below the 1.3571 level (red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be the 1.3535 level, where I plan to exit sell trades and open immediate buy positions in the opposite direction (expecting a 20–25 point rebound). Sellers could act at any moment. Important! Before selling, make sure the MACD indicator is below the zero line and just starting to decline from it.

Scenario #2: I also plan to sell the pound today in the case of two consecutive tests of the 1.3595 price level while the MACD indicator is in the overbought zone. This will limit the pair's upward potential and lead to a reversal downward. A decline to the opposite levels of 1.3571 and 1.3535 can be expected.

Chart Legend:

• Thin green line – entry price at which the trading instrument can be bought;
• Thick green line – suggested Take Profit level or manual profit-taking zone, as further growth beyond this level is unlikely;
• Thin red line – entry price at which the trading instrument can be sold;
• Thick red line – suggested Take Profit level or manual profit-taking zone, as further decline beyond this level is unlikely;
• MACD Indicator – when entering the market, it is important to consider overbought and oversold zones.

Important: Beginner Forex traders must make decisions about market entry with great caution. It is best to stay out of the market ahead of important fundamental reports to avoid getting caught in sharp price swings. If you choose to trade during news releases, always set stop-loss orders to minimize losses. Without stop-losses, you can lose your entire deposit very quickly—especially if you don't use money management and trade with large volumes.

And remember: successful trading requires a clear trading plan, like the one outlined above. Spontaneous trading decisions based on the current market situation are a losing strategy for intraday traders from the outset.