Analysis of Trades and Trading Tips for the British Pound

The price test at 1.3424 occurred when the MACD indicator was just beginning to move down from the zero mark, confirming the correct entry point for selling the pound. As a result, the pair decreased by 30 pips.

The dollar is demonstrating steady growth. Yesterday's increase was a logical consequence of the release of fresh data on the U.S. Consumer Price Index (CPI). Although the published figures met analysts' expectations, in light of geopolitical events, many participants are convinced that prices will continue to rise in the near future. The overall Consumer Price Index, a key inflation indicator, rose 0.3% month-on-month. This moderate rise indicates persistent inflationary pressure in the U.S. economy.

Particular attention should be paid to the core Consumer Price Index, which excludes volatile components like food and energy prices. Its 0.2% increase also aligns with forecasts, signaling stability in inflationary trends across a broader range of goods and services.

Today, Andrew Bailey, the Governor of the Bank of England, is scheduled to give a speech. In the context of ongoing instability on the international stage, the Governor's remarks may determine the future direction of the British pound. Traders will closely monitor any signals from monetary authorities regarding future steps. Additionally, attention will be given to any comments regarding economic growth prospects, employment figures, and the Bank of England's response to potential economic difficulties and sharp rises in energy prices.

Regarding the intraday strategy, I will rely more on implementing scenarios #1 and #2.

Buy Scenarios

Scenario #1: I plan to buy the pound today when the price reaches an entry point around 1.3375 (green line on the chart), targeting a rise to 1.3403 (thicker green line on the chart). At around 1.3403, I intend to exit the market and sell immediately on the rebound, expecting a 30-35-pip move in the opposite direction from the level. One can expect the pound to rise after Andrew Bailey's firm position. Important! Before buying, ensure the MACD indicator is above the zero mark and just starting to rise from it.

Scenario #2: I also plan to buy the pound today if the price tests 1.3359 twice in a row, when the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to an upward market reversal. One can expect growth to the opposite levels of 1.3375 and 1.3403.

Sell Scenarios

Scenario #1: I plan to sell the pound today after it reaches 1.3359 (red line on the chart), which will trigger a rapid decline in the pair. The key target for sellers will be the 1.3330 level, where I plan to exit the short positions and immediately buy in the opposite direction (expecting a 20-25-pip move in the opposite direction from the level). Pound sellers may appear at any time. Important! Before selling, ensure the MACD indicator is below the zero mark and just starting to decline from it.

Scenario #2: I also plan to sell the pound today if the price tests 1.3375 twice in a row, when the MACD indicator is in the overbought area. This will limit the pair's upside potential and lead to a market reversal downward. One can expect a decline to the opposing levels of 1.3359 and 1.3330.

What's on the Chart:

• The thin green line represents the entry price at which you can buy the trading instrument;
• The thick green line is the assumed price where you can set Take Profit or manually take profit, as further growth above this level is unlikely;
• The thin red line indicates the entry price at which you can sell the trading instrument;
• The thick red line is the assumed price where you can set Take Profit or manually take profit, as further decline below this level is unlikely;
• The MACD indicator. When entering the market, it's important to refer to the overbought and oversold zones.

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

And remember, successful trading requires a clear trading plan, like the one presented above. Making spontaneous trading decisions based on the current market situation is inherently a losing strategy for intraday traders.