Analysis of Trades and Trading Advice for the British Pound

Due to low volatility, the outlined price levels were not tested, preventing my trading strategies from being executed. However, today's U.S. jobless claims data is unlikely to attract significant interest. Nevertheless, the trend in initial claims can serve as an indicator of the overall labor market condition. Only substantial changes in the numbers might signal broader trends that could later impact the economy.

An increase in claims might indicate problems in specific sectors, potentially prompting additional measures from the Federal Reserve. However, the Fed has so far shown no signs of deviating from its current policy. Conversely, a decline in claims could be seen as a positive sign, boosting the U.S. dollar while possibly weakening the British pound.

For intraday strategy, I will primarily rely on Scenario #2.

Buy Signal

Scenario #1:

I plan to buy GBP at 1.2540 (green line on the chart) with a target of 1.2568 (thicker green line on the chart). At 1.2568, exit the market and open sell positions for a 30-35 point retracement. Note: Pound growth today can only be expected within the channel.

Important: Ensure the MACD indicator is above the zero mark and just starting to rise before buying.

Scenario #2:

I plan to buy GBP after two consecutive tests of 1.2523, provided the MACD indicator is in the oversold zone. This will limit the pair's downward potential and may lead to a reversal. Expected targets are 1.2540 and 1.2568.

Sell Signal

Scenario #1:

I plan to sell GBP after 1.2523 (red line on the chart) is reached, targeting 1.2498. Exit the market at 1.2498 and consider buying immediately for a 20-25 point retracement.

Important: Ensure the MACD indicator is below the zero mark and just starting to decline before selling.

Scenario #2:

I plan to sell GBP after two consecutive tests of 1.2540, provided the MACD indicator is in the overbought zone. This will limit the pair's upward potential and may lead to a reversal. Expected downward targets are 1.2523 and 1.2498.

Chart Key:

• Thin Green Line: Entry price for buying the trading instrument.
• Thick Green Line: Target price to place Take Profit or manually close positions, as further growth above this level is unlikely.
• Thin Red Line: Entry price for selling the trading instrument.
• Thick Red Line: Target price to place Take Profit or manually close positions, as further decline below this level is unlikely.
• MACD Indicator: Important to consider overbought and oversold zones when entering the market.

Important Tips for Beginner Forex Traders:

Be cautious when entering the market. Avoid trading during major fundamental report releases to prevent being caught in sharp price swings. Always set stop-loss orders to minimize losses. Without them, you could quickly lose your entire deposit, especially if trading large volumes.

Stick to a clear trading plan like the one outlined above for success. Making spontaneous decisions based on current market situations is an inherently losing strategy for intraday traders.