Analysis of Trades and Trading Tips for the British Pound

The test of the 1.3542 level occurred when the MACD indicator had already moved well below the zero line, which limited the pair's downside potential. For this reason, I did not sell the pound.

The pound remains within a range while maintaining the potential for further growth. The current consolidation of the British pound around established levels reflects a cautious stance among investors who are waiting for new drivers. The absence of fresh economic data from the UK or important political statements deprives the market of the necessary information to form a clear direction. In this situation, technical factors—such as support and resistance levels—play a greater role in shaping short-term dynamics.

The outlook for further pound appreciation remains, but its realization directly depends on the emergence of positive news. This could include data indicating an improving economic situation, declining inflation, or a firmer stance from the Bank of England on future monetary policy. Without such catalysts, breaking out of the current range and moving into a sustained upward trend is unlikely.

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

Buy Scenario

Scenario #1: Today, I plan to buy the pound at the entry point around 1.3575 (green line on the chart) with a target of rising to 1.3620 (thicker green line on the chart). Around 1.3620, I plan to exit the buy trades and open sell positions in the opposite direction, aiming for a move of 30–35 pips downward from that level. Today, we can expect the pound to grow within the current trading range.

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 if there are two consecutive tests of the 1.3547 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 to the opposite levels of 1.3575 and 1.3620 can be expected.

Sell Scenario

Scenario #1: I plan to sell the pound after a breakout below 1.3547 (red line on the chart), which should lead to a quick decline in the pair. The key target for sellers will be 1.3508, where I plan to exit short positions and immediately open buy positions in the opposite direction, aiming for a move of 20–25 pips upward from that level. Selling the pound is also possible in case of a failed consolidation near the daily high.

Important! Before selling, make sure the MACD indicator is below the zero line and beginning to decline.

Scenario #2: I also plan to sell the pound today in the event of two consecutive tests of the 1.3575 level while the MACD indicator is in the overbought zone. This will limit the pair's upside potential and lead to a downward market reversal. A drop toward the opposite levels of 1.3547 and 1.3508 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.