Trade Review and Trading Advice for the British Pound

The test of the 1.3513 level occurred when the MACD indicator was just beginning to move downward from the zero mark, confirming a proper entry point for selling the pound. As a result, the pair declined toward the target level of 1.3492.

In the second half of the day, a series of important speeches by representatives of the U.S. Federal Reserve is expected, which will undoubtedly attract close attention from financial markets. Among the speakers are Thomas Barkin, Jeffrey Schmid, and Alberto Musalem, whose comments regarding the current state of the economy, inflation trends, and future monetary policy could significantly impact the dollar, interest rates, and investor sentiment. In addition to economic statements, the market is awaiting new public remarks from U.S. President Donald Trump. His policies on trade tariffs and relations with Iran are currently causing considerable market volatility. Any new statements or hints of changes in foreign trade or foreign policy strategy could trigger sharp market movements.

As for the intraday strategy, I will mainly rely on implementing Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, I plan to buy the pound upon reaching the entry point around 1.3517 (green line on the chart), with a target of 1.3535 (thicker green line on the chart). Around 1.3553, I will exit long positions and open short positions in the opposite direction (targeting a 30–35 point move in the opposite direction from that level). Pound growth today can be expected after a dovish stance from the Federal Reserve.Important! Before buying, make sure that the MACD indicator is above the zero mark and just beginning to rise from it.

Scenario No. 2: I also plan to buy the pound today in the event of two consecutive tests of the 1.3490 level while the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a reversal upward. Growth toward the opposite levels of 1.3517 and 1.3553 can be expected.

Sell Signal

Scenario No. 1: Today, I plan to sell the pound after a break below the 1.3490 level (red line on the chart), which would lead to a rapid decline in the pair. The key target for sellers will be 1.3472, where I will exit short positions and immediately open long positions in the opposite direction (targeting a 20–25 point move in the opposite direction from that level). Pressure on the pound will return today in the event of hawkish comments and a lack of signals pointing to rate cuts.Important! Before selling, make sure that the MACD indicator is below the zero mark and just beginning to decline from it.

Scenario No. 2: I also plan to sell the pound today in the event of two consecutive tests of the 1.3517 level while the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal. A decline toward the opposite levels of 1.3490 and 1.3472 can be expected.

Chart Explanation

• Thin green line – entry price at which the trading instrument can be bought;
• Thick green line – estimated level for setting Take Profit orders or manually locking in profits, as further growth above this level is unlikely;
• Thin red line – entry price at which the trading instrument can be sold;
• Thick red line – estimated level for setting Take Profit orders or manually locking in profits, as further decline below this level is unlikely;
• MACD indicator – when entering the market, it is important to rely on overbought and oversold zones.

Important

Beginner Forex traders should be extremely cautious when making market entry decisions. Before the release of important fundamental reports, it is best to stay out of the market to avoid sharp price fluctuations. If you decide to trade during news releases, always set stop-loss orders to minimize losses. Without stop-loss orders, you can very quickly lose your entire deposit, especially if you do not apply proper money management and trade large volumes.

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