FX.co ★ GBP/USD: Tips for Beginner Traders on February 23rd (U.S. Session)

Trade Review and Tips for Trading the British Pound

The test of the 1.3528 level occurred when the MACD indicator had already moved significantly above the zero line, which limited the pair's upward potential. For this reason, I did not buy the pound. The second test of 1.3528 triggered Sell Scenario No. 2, resulting in a 30-point decline in the pair.

The lack of significant UK economic data did not help the pound, as no new buyers emerged despite attempts to push the price higher. GBP/USD showed sluggish dynamics in the first half of the day, reflecting traders' overall uncertainty regarding the prospects of the British currency. The absence of new positive catalysts capable of attracting buyers led to consolidation within a narrow trading range rather than further growth.

Next, attention will focus on U.S. trade tariffs, and any new statements or actions by President Donald Trump regarding the imposition or removal of tariffs could trigger sharp fluctuations in the currency markets. In addition to trade tensions, market participants will closely watch comments from Christopher Waller, a member of the FOMC. His remarks may provide insight into the Federal Reserve's future plans regarding monetary policy, interest rates, and economic growth prospects.

Data on changes in U.S. factory orders, although considered secondary economic indicators, may offer additional information about the state of the American economy.

As for the intraday strategy, I will primarily rely on implementing Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, I plan to buy the pound upon reaching the entry point around 1.3518 (green line on the chart), targeting growth to 1.3550 (thicker green line on the chart). Around 1.3550, I will exit long positions and open short positions in the opposite direction (expecting a 30–35 point move from that level). Pound growth today can be expected after weak U.S. data.Important: Before buying, make sure the MACD indicator is above the zero line and just beginning to rise from it.

Scenario No. 2: I also plan to buy the pound today in the case of two consecutive tests of the 1.3499 level when the MACD indicator is in the oversold zone. This would limit the pair's downward potential and lead to an upward reversal. Growth toward the opposite levels of 1.3518 and 1.3550 can then be expected.

Sell Signal

Scenario No. 1: I plan to sell the pound today after a breakout below 1.3499 (red line on the chart), which would lead to a quick decline in the pair. The key target for sellers will be 1.3469, where I will exit short positions and immediately open long positions in the opposite direction (expecting a 20–25 point move from that level). Pressure on the pound will return today in the event of strong U.S. data.Important: Before selling, make sure the MACD indicator is below the zero line and just beginning to decline from it.

Scenario No. 2: I also plan to sell the pound today in the case of two consecutive tests of the 1.3518 level when the MACD indicator is in the overbought zone. This would limit the pair's upward potential and trigger a downward reversal. A decline toward the opposite levels of 1.3499 and 1.3469 can then be expected.

Chart Explanation

• Thin green line – entry price for buying the trading instrument.
• Thick green line – estimated Take Profit level or area to lock in profits, as further growth above this level is unlikely.
• Thin red line – entry price for selling the trading instrument.
• Thick red line – estimated Take Profit level or area to lock in profits, as further decline below this level is unlikely.
• MACD indicator – when entering the market, it is important to consider overbought and oversold zones.

Important

Beginner Forex traders should make market entry decisions very carefully. It is best to stay out of the market before major fundamental reports are released to avoid sharp price swings. If you decide to trade during news releases, always place stop-loss orders to minimize potential losses. Without stop-loss orders, you can quickly lose your entire deposit—especially if you do not use proper money management and trade large volumes.

Remember that successful trading requires a clear trading plan, like the one outlined above. Spontaneous trading decisions based solely on the current market situation are inherently a losing strategy for intraday traders.