Trade Review and Tips for Trading the British Pound

The test of the 1.3415 level occurred when the MACD indicator was just beginning to move upward from the zero line, confirming a valid entry point for buying the pound. As a result, the pair rose by 15 points.

Despite the lack of significant economic data and central bank statements, the pound strengthened against the dollar. Next, we have the U.S. Existing Home Sales report. Although housing market data is certainly important for understanding current conditions, the market appears to have largely priced in the expected results. Investors and traders will closely watch for surprises, but only a significant deviation from expectations is likely to trigger a spike in volatility.

Meanwhile, the gathering of International Monetary Fund leaders promises to be more impactful. Discussions at this venue cover both global macroeconomic challenges and regional issues. Special attention will be given to global growth forecasts, the debt burden of developing countries, and possible measures to stabilize financial markets amid geopolitical tensions in the Middle East.

As for intraday strategy, I will primarily rely on Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: I plan to buy the pound today upon reaching the entry point around 1.3432 (green line on the chart), targeting a rise to 1.3454 (thicker green line). Around 1.3454, I plan to exit long positions and open short positions in the opposite direction (expecting a 30–35 point move). A rise in the pound today can be expected within the context of a bullish market.Important: Before buying, make sure the MACD indicator is above the zero line and just starting to rise from it.

Scenario No. 2: I also plan to buy the pound if there are two consecutive tests of the 1.3420 level while the MACD indicator is in the oversold zone. This would limit the pair's downward potential and trigger an upward reversal. A move toward 1.3432 and 1.3454 can be expected.

Sell Signal

Scenario No. 1: I plan to sell the pound after a breakout below 1.3420 (red line on the chart), which could lead to a rapid decline. The key target for sellers will be 1.3399, where I plan to exit short positions and open long positions in the opposite direction (expecting a 20–25 point move). Pressure on the pound will return if strong U.S. data is released.Important: Before selling, make sure the MACD indicator is below the zero line and just starting to decline.

Scenario No. 2: I also plan to sell the pound if there are two consecutive tests of the 1.3432 level while the MACD indicator is in the overbought zone. This would limit the pair's upward potential and lead to a downward reversal. A decline toward 1.3420 and 1.3399 can be expected.

Chart Explanation

• Thin green line – entry price for buying
• Thick green line – estimated Take Profit level or area to lock in profits, as further growth above this level is unlikely
• Thin red line – entry price for selling
• Thick red line – estimated Take Profit level or area to lock in profits, as further decline below this level is unlikely
• MACD indicator – when entering the market, consider overbought and oversold zones

Important: Beginner Forex traders should be very cautious when making entry decisions. Before major fundamental reports are released, it is best to stay out of the market to avoid sharp price fluctuations.

If you choose to trade during news releases, always use stop-loss orders to minimize losses. Without stop-losses, you can quickly lose your entire deposit—especially if you do not apply proper risk management and trade large volumes.

Remember, successful trading requires a clear trading plan, like the one outlined above. Spontaneous trading decisions based on current market conditions are a losing strategy for intraday traders.