The British pound continues to strengthen. Investors have responded optimistically to the easing of Washington's rhetoric towards its trading partners, reducing concerns about a global trade war. This, in turn, has supported the British currency, as the stability of the global economy directly affects the export-oriented UK economy. In addition, domestic factors contribute to the pound's strength. The latest UK inflation and GDP data were relatively solid, increasing the likelihood of a further interest rate cut by the Bank of England in an effort to stimulate the economy. Given the absence of any economic data today, in the short term, the pound's dynamics will depend on future decisions by the U.S. regarding trade policy. The lack of macroeconomic data also leaves room for investor speculation and maintaining positive sentiment, which typically favors continued growth.

For intraday strategy, I will focus primarily on Scenarios #1 and #2.

Buy Scenario

Scenario 1: I plan to buy the pound today upon reaching the entry point around 1.3596 (green line on the chart), targeting a rise to the level of 1.3651 (thicker green line on the chart). Near 1.3651, I intend to exit long positions and open short positions in the opposite direction, aiming for a 30–35 pip pullback. Pound growth can be expected in continuation of the current uptrend. Important: Before buying, ensure the MACD indicator is above the zero line and beginning to rise.

Scenario 2: I also plan to buy the pound today if there are two consecutive tests of the 1.3567 level while the MACD indicator is in the oversold zone. This will limit the pair's downside potential and lead to a market reversal to the upside. A rise toward the opposite levels of 1.3596 and 1.3651 can be expected.

Sell Scenario

Scenario 1: I plan to sell the pound today after a breakout below the 1.3567 level (red line on the chart), which would lead to a quick decline in the pair. The key target for sellers will be 1.3528, where I plan to exit short positions and immediately open long positions in the opposite direction, aiming for a 20–25 pip bounce. Selling the pound is also possible after a failed attempt to break above the daily high. Important: Before selling, ensure the MACD indicator is below the zero line and just beginning to decline.

Scenario 2: I also plan to sell the pound today if there are two consecutive tests of the 1.3596 level while the MACD indicator is in the overbought zone. This will limit the pair's upside potential and trigger a reversal to the downside. A decline toward the opposite levels of 1.3567 and 1.3528 can be expected.

What's on the Chart:

• The thin green line represents the entry price where the trading instrument can be bought.
• The thick green line indicates the expected price level where a Take Profit order can be placed, or profits can be manually secured, as further price growth above this level is unlikely.
• The thin red line represents the entry price where the trading instrument can be sold.
• The thick red line indicates the expected price level where a Take Profit order can be placed, or profits can be manually secured, as further price decline below this level is unlikely.
• The MACD indicator should be used to assess overbought and oversold zones when entering the market.

Important Notes:

• Beginner Forex traders should exercise extreme caution when making market entry decisions. It is advisable to stay out of the market before the release of important fundamental reports to avoid exposure to sharp price fluctuations. If you choose to trade during news releases, always use stop-loss orders to minimize potential losses. Trading without stop-loss orders can quickly wipe out your entire deposit, especially if you neglect money management principles and trade with high volumes.
• Remember, successful trading requires a well-defined trading plan, similar to the one outlined above. Making impulsive trading decisions based on the current market situation is a losing strategy for intraday traders.