Analysis of Trades and Tips for Trading the British PoundThe test of 1.2720 occurred while the MACD indicator was well above zero, limiting the pound's upward potential. For this reason, I refrained from buying. A similar situation occurred at the 1.2690 level for selling opportunities, but I chose not to trade here either.

The pound experienced a sharp rise in the first half of the day. By the time of Bank of England Governor Andrew Bailey's scheduled speech in the afternoon, the pound came under renewed pressure, reflecting market uncertainty. This situation stems from ambiguity in UK economic data. Investors are closely monitoring not only inflation and economic growth but also a range of other key indicators. However, Bailey's speech remains the pivotal factor, as a clear outline of the central bank's intentions could strengthen GBP/USD. A hawkish tone may bolster the pound, while a dovish approach or hints at easing could trigger a decline, increasing market uncertainty. Additionally, global economic developments and the responses of other central banks further complicate the situation.

If Bailey's speech does not prompt significant market reactions, major price movements are unlikely. For intraday strategies, I will focus primarily on implementing Scenario 2.

Buy Signal

Scenario 1:Today, I plan to buy the pound at the 1.2706 level (green line on the chart) with a target of 1.2754 (thicker green line on the chart). At 1.2754, I will close long positions and consider selling in the opposite direction, aiming for a 30–35 point pullback. Any rally in the pound today is likely to be limited to corrective movements.Important: Before buying, ensure the MACD indicator is above zero and beginning to rise.

Scenario 2:I also plan to buy the pound today if the price tests the 1.2674 level twice while the MACD is in oversold territory. This setup will limit the pair's downward potential and may lead to an upward market reversal. Potential upward targets are 1.2706 and 1.2754.

Sell Signal

Scenario 1:I plan to sell the pound after the price falls below 1.2674 (red line on the chart), which could trigger a sharp decline. The key target for sellers will be 1.2636, where I will close short positions and consider buying immediately for a 20–25 point pullback. Sellers will likely become active after breaching key support levels.Important: Before selling, ensure the MACD indicator is below zero and beginning to decline.

Scenario 2:I also plan to sell the pound today if the price tests the 1.2706 level twice while the MACD is in overbought territory. This setup will limit the pair's upward potential and may lead to a downward reversal. Potential downward targets are 1.2674 and 1.2636.

Chart Details

• Thin Green Line — Entry price for buying the instrument.
• Thick Green Line — Suggested price for setting Take Profit or manually closing trades, as further growth above this level is unlikely.
• Thin Red Line — Entry price for selling the instrument.
• Thick Red Line — Suggested price for setting Take Profit or manually closing trades, as further declines below this level are unlikely.
• MACD Indicator — Follow overbought and oversold zones when entering the market.

Important Notes for Beginner Forex TradersExercise caution when making market entry decisions. Avoid trading during major data releases to minimize exposure to sharp price fluctuations.It is essential to use stop-loss orders to limit potential losses. Without these, you risk quickly depleting your entire deposit, especially if trading large volumes without proper money management.Stick to a well-defined trading plan, such as the one outlined above, to maintain discipline and reduce risk. Unplanned trading decisions based on market conditions often result in losses for intraday traders.