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Analysis of Trades and Trading Tips for the British Pound
The outlined levels were not tested in the second half of the day. We fell short of reaching 1.2948, so I did not execute any trades. The fairly positive data on the U.S. PMI and manufacturing sector activity may not have strongly supported the dollar but limited the pound's upward potential. Unfortunately, there's no economic report from the UK today, allowing buyers to continue a bullish correction, though this will be pretty challenging—especially given the downtrend observed throughout the week. I will focus more on implementing Scenarios #1 and #2 for the intraday strategy.
Buy Signal
Scenario #1: I plan to buy the pound today if it reaches the entry point around 1.2978 (green line on the chart), aiming for growth to the 1.3012 level (thicker green line on the chart). At the 1.3012 level, I plan to exit the purchases and open sales in the opposite direction (targeting a movement of 30-35 pips in the opposite direction from this level). Any potential rise in the pound today will likely be within the scope of a minor correction. Important! Before buying, ensure that the MACD indicator is above the zero mark and beginning its upward movement.
Scenario #2: I also plan to buy the pound today in the event of two consecutive tests of the 1.2958 price level when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to an upward market reversal. Growth can be expected to the opposite levels of 1.2978 and 1.3012.
Sell Signal
Scenario #1: I plan to sell the pound today after breaking below the 1.2958 level (red line on the chart), which will lead to a rapid decline in the pair. The key target for sellers will be the 1.2926 level, where I plan to exit sales and immediately open purchases in the opposite direction (targeting a movement of 20-25 pips in the opposite direction from this level). Selling the pound is viable only if weak buyer activity is near the daily high. Important! Before selling, ensure that the MACD indicator is below the zero mark and just beginning its downward movement.
Scenario #2: I also plan to sell the pound today in the event of two consecutive tests of the 1.2978 price level when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. A decline can be expected to the opposite levels of 1.2958 and 1.2926.
What's on the Chart:
Thin Green Line: The entry price at which the trading instrument can be bought.
Thick Green Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further growth above this level is unlikely.
Thin Red Line: The entry price for selling the trading instrument.
Thick Red Line: The estimated price at which take-profit orders can be set, or profits can be manually secured, as further declines below this level are unlikely.
MACD Indicator: Considering overbought and oversold zones is crucial when entering the market.
Important Note for Beginners:
Novice traders in the Forex market must be cautious when making market entry decisions. It is best to stay out of the market before the release of major fundamental reports to avoid getting caught in sharp price movements. If you decide to trade during news releases, always set stop-loss orders to minimize losses. You can quickly lose your entire deposit without stop-loss orders, especially if you do not use money management and trade with large volumes.
And remember, successful trading requires a clear trading plan, like the one I've presented above. Spontaneous trading decisions based on the current market situation are inherently a losing strategy for an intraday trader.
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