Analysis of Trades and Trading Tips for the British Pound

The price test at 1.3443 coincided with the MACD indicator just beginning to move down from the zero mark, confirming the correct entry point to sell the pound. As a result, the pair decreased to the target level of 1.3416.

Pressure on risk assets returned after news that Iran plans to mine the Strait of Hormuz, leading to increased demand for the U.S. dollar. This geopolitical twist caused financial markets worldwide to pause in anticipation. Investors, traditionally seeking safe havens during periods of uncertainty, again turned to the dollar, viewing it as a guarantor of stability amid looming danger. Further developments will depend on various factors, including diplomatic efforts to de-escalate tensions, Iran's actual actions, and the U.S. response with promises to "bomb Iran like never before."

Today, the lack of fresh UK data creates favorable conditions for a potential rise in the GBP/USD currency pair. In the lack of new information, market participants are likely to focus on earlier signals and overall market sentiment. If we set aside the geopolitical conflict, this may facilitate a return of GBP/USD to growth.

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

Buy Scenarios

Scenario #1: I plan to buy the pound today upon reaching an entry point around 1.3456 (green line on the chart) with a target growth to the level of 1.3481 (the thicker green line on the chart). At around 1.3481, I intend to exit the long positions and open short positions in the opposite direction (expecting a movement of 30-35 pips in the opposite direction from the level). One can anticipate the pound's rise today in continuation of the trend. 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 1.3440 twice in a row while the MACD indicator is in the oversold area. This will limit the pair's downside potential and lead to the market reversing upward. One can expect growth to the opposite levels of 1.3456 and 1.3481.

Sell Scenarios

Scenario #1: I plan to sell the pound today after the level at 1.3440 (red line on the chart) is reached, which will lead to a rapid decline in the pair. The key target for sellers will be the 1.3408 level, where I intend to exit 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 appear at any time. Important! Before selling, please ensure the MACD indicator is below the zero mark and just beginning to decline from it.

Scenario #2: I also plan to sell the pound today if the price tests 1.3456 twice in a row while the MACD indicator is in the overbought area. This will limit the pair's upside potential and could lead the market to reverse downward. One can expect a decline to the opposite levels of 1.3440 and 1.3408.

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.