Analysis of Trades and Tips for Trading the British Pound

The price test at 1.3495 occurred as the MACD indicator began to move down from the zero mark, confirming the entry point for selling the pound. As a result, the pair declined by more than 20 pips.

The pound weakened and the dollar strengthened after news that the U.S. economy posted its fastest growth in several years in the third quarter of this year. GDP increased by 4.3% year-over-year, while economists had expected an increase of only 3.2%. This surge, following growth in the previous two quarters, bolstered confidence in the U.S. economy's resilience despite global challenges such as inflation and geopolitical instability. Strong consumer demand, especially in the services sector, as well as increased investment in business equipment and software, were key drivers of this growth.

The upward potential for the GBP/USD pair may continue today. However, the absence of economic data from the UK does not guarantee a one-sided movement for the GBP/USD pair. Global factors, such as market sentiment, political events, and U.S. news, will continue to significantly influence currency rates. Investors will also closely monitor technical indicators and support/resistance levels to identify potential entry and exit points. Furthermore, the lack of fundamental data from the UK may increase the volatility of the GBP/USD pair as traders will focus more on speculative factors and market movements.

Regarding the intraday strategy, I will rely more on implementing scenarios No. 1 and No. 2.

Buying Scenarios

Scenario No. 1: I plan to buy the pound today upon reaching an entry point around 1.3527 (green line on the chart), with a target of rising to 1.3567 (thicker green line on the chart). Around 1.3567, I intend to exit the long positions and open shorts in the opposite direction (expecting a movement of 30-35 pips in the opposite direction from the level). Expecting strong growth for the pound today can continue in the trend. Important! Before buying, ensure that the MACD indicator is above the zero mark and is just starting to rise from it.

Scenario No. 2: I also plan to buy the pound today in case of two consecutive tests of the price 1.3507 at the moment 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 a rise to the opposite levels of 1.3527 and 1.3567.

Selling Scenarios

Scenario No. 1: I plan to sell the pound today after updating the level of 1.3507 (red line on the chart), which will lead to a rapid decline of the pair. The key target for sellers will be the 1.3471 level, where I intend to exit the shorts and open longs immediately in the opposite direction (expecting a 20-25-pip move in the opposite direction from the level). Pound sellers may emerge during the correction. Important! Before selling, ensure that the MACD indicator is below the zero mark and is just starting to decline from it.

Scenario No. 2: I also plan to sell the pound today if the price tests 1.3527 twice in a row, when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a market reversal downward. One can expect a decline to the opposite levels of 1.3507 and 1.3471.

What is on the Chart:

• Thin green line – the entry price at which you can buy the trading instrument;
• Thick green line – the assumed price where you can set Take Profit or independently capture profits, as further growth above this level is unlikely;
• Thin red line – the entry price at which you can sell the trading instrument;
• Thick red line – the assumed price where you can set Take Profit or independently capture profits, as further decline below this level is unlikely;
• MACD Indicator. When entering the market, it is important to follow the overbought and oversold zones.

Important. Beginner Forex traders need to make very cautious decisions about entering the market. Before important fundamental reports are released, it is best to stay out of the market to avoid falling into sharp fluctuations in rates. If you decide to trade during news releases, always set stop orders to minimize losses. Without setting stop orders, you can quickly lose the entire deposit, especially if you do not use money management and trade large volumes.

And remember, to trade successfully, you need to have a clear trading plan, similar to the one I presented above. Spontaneous trading decisions based on the current market situation is inherently a losing strategy for intraday traders.