Analysis of Trades and Tips for Trading the British Pound

The test of the price at 1.3557 occurred when the MACD indicator was just beginning to move upwards from the zero mark, confirming a good entry point for buying pounds. However, the pair did not see significant growth.

Due to events in the Middle East, pressure on the pound returned. Reports of a supposed attack on an American warship in the Strait of Hormuz and shelling of UAE territory quickly boosted demand for the US dollar. Today, the international community and traders must closely monitor developments and be prepared to react to the ongoing situation.

As for reports, today's morning in the UK will pass without any important macroeconomic releases, leaving the British pound in a state of uncertainty; however, it seems that this does not relieve the pressure observed since yesterday. The main factor influencing the national currency's quotes remains the tense geopolitical situation in the Middle East. The lack of domestic data means the market will remain on standby for further developments in the Middle East. It is possible that investor caution will persist throughout the day until clearer signals about future developments emerge.

Regarding the intraday strategy, I will focus more on implementing Scenarios #1 and #2.

Buy Scenarios

Scenario #1: I plan to buy pounds today upon reaching the entry point around 1.3531 (green line on the chart), with a target increase to 1.3560 (thicker green line on the chart). At around 1.3560, I intend to exit my long positions and open short positions in the opposite direction (expecting a movement of 30-35 pips in the opposite direction from the level). Strong pound growth can only be anticipated if the conflict de-escalates. Important! Before buying, ensure that the MACD indicator is above the zero mark and just beginning to rise from there.

Scenario #2: I also plan to buy pounds today if there are two consecutive tests of 1.3513 while the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. An increase to the opposite levels of 1.3531 and 1.3560 can be expected.

Sell Scenarios

Scenario #1: I plan to sell pounds today after the pair reaches 1.3513 (red line on the chart), which will trigger a rapid decline in the pair. The key target for sellers will be the level of 1.3485, where I intend to exit my shorts and also immediately open longs in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pound may return if there is negative news from the Middle East. Important! Before selling, ensure that the MACD indicator is below the zero mark and just starting to decline from there.

Scenario #2: I also plan to sell pounds today if there are two consecutive tests of 1.3531 while the MACD indicator is in the overbought area. This will limit the pair's upside potential and lead to a market reversal downward. A decline to the opposite levels of 1.3513 and 1.3485 can be expected.

What is on the Chart:

• The thin green line – entry price at which the trading instrument can be bought;
• The thick green line – approximate price where take profit can be set or to realize profit, as further growth above this level is unlikely;
• The thin red line – entry price at which the trading instrument can be sold;
• The thick red line – approximate price where take profit can be set or to realize profit, as further decline below this level is unlikely;
• MACD indicator. When entering the market, it is important to be guided by overbought and oversold zones.

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

And remember, for successful trading, it is essential to have a clear trading plan, as outlined above. Making impulsive trading decisions based on the current market situation is fundamentally a losing strategy for an intraday trader.