Analysis of Deals and Trading Tips for the British Pound

The test of the 1.2969 price level occurred when the MACD indicator was starting to move downward from the zero mark, which, within the framework of the downtrend, confirmed a valid entry point for selling the pound. As a result, the pair dropped towards the target level of 1.2942, falling just short, allowing about 25 pips of profit to be taken from the market. Statements from representatives of the U.S. Federal Reserve were the main reason for the sustained pressure on risk assets, including the British pound. Today, there is no fundamental data from the UK, so buyers will likely attempt to correct the situation and buy back the pound towards the area of monthly lows. The speech by Sarah Breeden, Deputy Governor for Financial Stability of the Bank of England, will be a key event for traders and could pose a serious obstacle to the pair's upward movement. As for the intraday strategy, I will focus more on the implementation of scenarios #1 and #2.

Buy Signal

Scenario #1: I plan to buy the pound today when it reaches the entry point around 1.2995 (green line on the chart) with a target of rising to 1.3038 (thicker green line on the chart). Around 1.3038, I plan to exit purchases and open sales in the opposite direction (expecting a movement of 30-35 pips downward from this level). Any rise in the pound today will depend on restrained statements from the BoE representatives. Important! Before buying, ensure that the MACD indicator is above the zero mark and starting to rise.

Scenario #2: I also plan to buy the pound today in the case of two consecutive tests of the 1.2969 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward reversal. A rise can be expected towards the opposite levels of 1.2995 and 1.3038.

Sell Signal

Scenario #1: I plan to sell the pound today after the 1.2969 level is broken (red line on the chart), which should lead to a quick drop in the pair. The key target for sellers will be 1.2928, where I plan to exit sales and open purchases in the opposite direction (expecting a movement of 20-25 pips upward from this level). Selling the pound is advisable in case of weak bullish activity following the policymaker's speech. Important! Before selling, ensure that the MACD indicator is below the zero mark and starting to decline.

Scenario #2: I also plan to sell the pound today in the case of two consecutive tests of the 1.2995 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected towards the opposite levels of 1.2969 and 1.2928.

What's on the Chart:

Thin Green Line: The entry price at which the trading instrument can be bought.

Thick Green Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further growth above this level is unlikely.

Thin Red Line: The entry price for selling the trading instrument.

Thick Red Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further declines below this level are unlikely.

MACD Indicator: Considering overbought and oversold zones is crucial when entering the market.

Important Note for Beginners:

Novice traders in the Forex market must be cautious when making market entry decisions. It is best to stay out of the market before the release of major fundamental reports to avoid getting caught in sharp price movements. If you decide to trade during news releases, always set stop-loss orders to minimize losses. You can quickly lose your entire deposit without stop-loss orders, especially if you do not use money management and trade with large volumes.

And remember, successful trading requires a clear trading plan, like the one I've presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.