Trade Analysis and Recommendations for the British Pound

The test of the 1.3267 level occurred when the MACD indicator had just started moving down from the zero line, confirming a valid entry point for selling the pound. However, a significant drop in the pair never materialized. After several similar tests, I decided to exit the market.

The lack of economic data from the U.K. did little to help the pound fall. Investors seemed to prefer staying on the sidelines, unwilling to bet on the British currency without a clear understanding of the U.K. economy's current state. This uncertainty—combined with the weakening U.S. dollar amid expectations of a Federal Reserve rate cut—provided support for the pound and prevented a deeper sell-off.

In the second half of the day, U.S. factory orders data will be released. However, even positive figures are unlikely to provide strong support for the dollar. The market will probably respond with caution, as short-term macroeconomic data tends to have limited long-term influence on exchange rates.

As for the intraday strategy, I'll primarily rely on the execution of Scenarios #1 and #2.

Buy Signal

Scenario #1: I plan to buy the pound today at the entry point around 1.3299 (green line on the chart), targeting a rise to 1.3346 (thicker green line on the chart). Near 1.3346, I will exit long positions and open sell positions in the opposite direction (anticipating a 30–35 point pullback from the level). Pound appreciation today is likely only in the event of weak U.S. data. Important: Before buying, make sure the MACD indicator is above the zero line and just beginning to rise.

Scenario #2: I also plan to buy the pound if there are two consecutive tests of the 1.3267 level while the MACD indicator is in oversold territory. This will limit the pair's downward potential and lead to a reversal upward. Targets: 1.3299 and 1.3346.

Sell Signal

Scenario #1: I plan to sell the pound after breaking below the 1.3267 level (red line on the chart), which could lead to a quick drop in the pair. The key target for sellers will be 1.3226, where I will exit short positions and open buy positions in the opposite direction (targeting a 20–25 point rebound). Sellers are unlikely to dominate today. Important: Before selling, make sure the MACD indicator is below the zero line and just beginning to decline.

Scenario #2: I also plan to sell the pound if there are two consecutive tests of the 1.3299 level while the MACD indicator is in overbought territory. This will limit the pair's upward potential and lead to a downward reversal. Targets: 1.3267 and 1.3226.

Chart Notes:

• Thin green line – Entry price for buying the trading instrument
• Thick green line – Suggested Take Profit level or manual profit-taking point, as further growth above this level is unlikely
• Thin red line – Entry price for selling the trading instrument
• Thick red line – Suggested Take Profit level or manual profit-taking point, as further decline below this level is unlikely
• MACD Indicator – Use overbought and oversold zones to guide market entries

Important: Beginner Forex traders should exercise extreme caution when entering the market. It's best to stay out of the market ahead of important fundamental reports to avoid getting caught in sharp price swings. If you decide to trade during news releases, always place stop-loss orders to minimize losses. Without stop-losses, you risk quickly losing your entire deposit—especially if you neglect money management and trade with large volumes.

And remember: successful trading requires a clear and structured trading plan, like the one presented above. Spontaneous decision-making based on the current market situation is a fundamentally losing strategy for intraday traders.