Trade Review and Tips for Trading the British Pound

The test of the 1.3305 level occurred when the MACD indicator had just begun moving upward from the zero line, confirming a valid entry point for buying the pound. As a result, the pair rose by 20 points.

The escalation of geopolitical tensions in the Middle East, particularly the intensification of the conflict and the growing involvement of other regional powers, continues to have a significant impact on financial markets. In conditions of uncertainty and potential disruptions to energy supplies, investors traditionally seek safety in the U.S. dollar, viewing it as one of the most reliable assets. This increases demand for the dollar, despite relatively weak macroeconomic signals from the United States. Today, only the U.S. construction spending report will be released, and even if the data is very weak, it is unlikely to significantly support the pound against the dollar.

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

Buy Signal

Scenario No. 1: I plan to buy the pound today when the price reaches the entry point around 1.3280 (green line on the chart), with a target of 1.3322 (thicker green line on the chart). Around 1.3322, I will exit long positions and open short positions in the opposite direction (expecting a 30–35 point move). A strong upward move in the pound today is unlikely.Important: Before buying, make sure the MACD indicator is above the zero line and just beginning to rise.

Scenario No. 2: I also plan to buy the pound if the price tests the 1.3251 level twice in a row while the MACD indicator is in the oversold zone. This would limit the downward potential and lead to a reversal upward. Growth toward 1.3280 and 1.3322 can be expected.

Sell Signal

Scenario No. 1: I plan to sell the pound after the price breaks below 1.3251 (red line on the chart), which should lead to a rapid decline. The key target for sellers will be 1.3213, where I will exit short positions and open long positions in the opposite direction (expecting a 20–25 point move). Downward pressure on the pound may return at any time.Important: Before selling, make sure the MACD indicator is below the zero line and just beginning to fall.

Scenario No. 2: I also plan to sell the pound if the price tests 1.3280 twice in a row while the MACD indicator is in the overbought zone. This would limit the upward potential and lead to a reversal downward. A decline toward 1.3251 and 1.3213 can be expected.

Chart Explanation:

• Thin green line: entry price for buying
• Thick green line: suggested 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: suggested Take Profit level or area to lock in profits, as further decline below this level is unlikely
• MACD indicator: when entering the market, pay attention to overbought and oversold zones

Important: Beginner Forex traders should make entry decisions very carefully. It is best to stay out of the market before major fundamental reports to avoid sharp price movements. 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 use proper money management and trade large volumes.

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