Analysis of Trades and Tips for Trading the British Pound

The test of the price at 1.3280 coincided with the moment when the MACD indicator was just beginning to rise from the zero mark, confirming it as a correct entry point for buying the pound. As a result, the pair rose by more than 90 pips.

The day before, the head of the White House, Donald Trump, ordered the planned strikes on Iranian energy sector targets to be postponed for a week. At the same time, the president announced the start of constructive dialogue with Tehran. These statements triggered a plunge in the US dollar and strengthened the pound.

However, today, the first half of the day in the financial markets could change everything. Key macroeconomic indicators reflecting the state of the UK economy will be in the spotlight for investors and analysts. In particular, the publication of data on the UK manufacturing purchasing managers' index (PMI) is expected. This indicator traditionally serves as a barometer of the health of industrial production, tracking parameters such as new orders, production levels, employment, and inventories. Positive dynamics in the manufacturing sector often herald overall economic growth. Concurrently, data on the services sector PMI will be released. Given that the services sector accounts for a significant share of the UK's GDP, its readings are crucial for assessing the current economic climate. The services index tracks trends in areas such as financial services, retail, transportation, and hospitality, providing insight into consumer spending and business sentiment. Finally, a comprehensive view of the economy will be provided by the publication of the composite PMI index. Only very positive statistics will be able to sustain yesterday's upward trend of the pound.

Regarding the intraday strategy, I will primarily focus on implementing scenarios No. 1 and No. 2.

Buy Scenarios

Scenario 1: I plan to buy the pound today when it reaches an entry point around 1.3413 (green line on the chart), targeting a move to 1.3445 (thicker green line on the chart). At around 1.3445, I intend to exit the market and open sell positions in the opposite direction (expecting a 30-35-pip move back from the level). Strong pound growth can only be expected after good economic data. Important! Before buying, ensure the MACD indicator is above the zero mark and just beginning its rise.

Scenario 2: I also plan to buy the pound today if the price tests 1.3389 twice in a row while the MACD indicator is oversold. This will limit the pair's downward potential and lead to an upward market reversal. An increase to opposing levels of 1.3413 and 1.3445 can be anticipated.

Sell Scenarios

Scenario 1: I plan to sell the pound today after the 1.3389 level is updated (red line on the chart), which will trigger a quick decline in the pair. The key target for sellers will be the 1.3350 level, where I plan to exit the short positions and immediately open long positions in the opposite direction (expecting a 20-25-pip move back from the level). Pressure on the pound may return if the data is weak. Important! Before selling, ensure the MACD indicator is below the zero mark and just beginning its decline.

Scenario 2: I also plan to sell the pound today if the price tests 1.3413 twice in a row, when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decrease to opposing levels of 1.3389 and 1.3350 can be expected.

What's on the Chart:

• The thin green line represents the entry price at which you can buy the trading instrument;
• The thick green line is the assumed price where you can set Take Profit or manually take profit, as further growth above this level is unlikely;
• The thin red line indicates the entry price at which you can sell the trading instrument;
• The thick red line is the assumed price where you can set Take Profit or manually take profit, as further decline below this level is unlikely;
• The MACD indicator. When entering the market, it's important to refer to the overbought and oversold zones.

Important: Beginner traders in the forex market need to make entry decisions very carefully. It is best to stay out of the market before the release of important fundamental reports to avoid sharp fluctuations in prices. If you choose to trade during the release of news, always set Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for intraday traders.