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Review of Trades and Trading Tips for the British Pound
The test of the 1.2970 price level occurred when the MACD indicator had already moved significantly below the zero mark, which limited the pair's downward potential. For this reason, I did not sell the pound and waited for the implementation of scenario #2 for buying. The second test shortly after, when the MACD was in the oversold area, seemed like an ideal buy setup, which I acted on. Unfortunately, the pair did not rise, resulting in a stop-out. In the second half of the day, the only data expected is the U.S. factory orders report. Despite this, pound buyers, who have not disappeared, will still have a chance to continue the upward movement, but they need to be more active. As for intraday strategy, I will rely more on implementing scenarios #1 and #2.
Buy Signal
Scenario #1: Today, I plan to buy the pound at the entry point around 1.2986 (green line on the chart) with the target of rising to 1.3028 (thicker green line on the chart). At 1.3028, I will exit the purchases and open sell positions in the opposite direction (aiming for a 30-35 point move in the opposite direction from the level). A pound rise today can only be expected after weak U.S. data. Important! Before buying, make sure the MACD indicator is above the zero mark and just beginning to rise from it.
Scenario #2: I also plan to buy the pound today in case of two consecutive tests of the 1.2953 price level when the MACD is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upward. A rise to the opposite levels of 1.2986 and 1.3028 can be expected.
Sell Signal
Scenario #1: I plan to sell the pound after updating the 1.2953 level (red line on the chart), which will lead to a quick decline in the pair. The key target for sellers will be 1.2918, where I will exit sales and immediately buy in the opposite direction (aiming for a 20-25 point move in the opposite direction from the level). Sellers will show strength after positive economic reports. Important! Before selling, make sure the MACD indicator is below the zero mark and just beginning to fall from it.
Scenario #2: I also plan to sell the pound today in case of two consecutive tests of the 1.2986 price level when the MACD is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline to the opposite levels of 1.2953 and 1.2918 can be expected.
Chart Notes:
Important: Beginner Forex traders should be very cautious when making entry decisions. It is best to stay out of the market before the release of significant fundamental reports to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-losses, you could quickly lose your entire deposit, especially if you trade large volumes without money management.
Remember: To trade successfully, you need a clear trading plan, like the one outlined above. Making spontaneous trading decisions based on current market situations is an inherently losing strategy for intraday traders.
*Analiza tržišta koja se ovde nalazi namenjena je boljem razumevanju tržišta i ne pruža instrukcije za vršenje trgovanja.
Uz InstaSpot-ove analitičke preglede uvek ćete biti u toku sa tržišnim trendovima! Klijentima InstaSpot-a su dostupni mnogobrojni besplatni servisi za uspešno trgovanje.
