Analysis of transactions in the GBP / USD pair
A signal to buy emerged after GBP/USD hit 1.3538. However, the pair did not rally even though the MACD line was moving above zero. The second attempt was more successful because it led to an increase of more than 35 pips.
As for shorts, selling at 1.3575 brought losses. No other signal appeared for the rest of the day as well.
Less active growth of the UK GDP and industrial production put pressure on pound last Friday morning. Fortunately, it was not that serious activity because in the service sector turned out to be much better, and the weak data on US consumer sentiment halted the rally in dollar
There are no important statistics for the UK today, so there is a high chance that the decline will continue. Upcoming statements from James Bullard will also shake the market.
For long positions:
Buy pound when the quote reaches 1.3552 (green line on the chart) and take profit at the price of 1.3597 (thicker green line on the chart). A rally will occur only if the bulls manage to push GBP/USD above 1.3552. But before buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.3533, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3552 and 1.3597.
For short positions:
Sell pound when the quote reaches 1.3533 (red line on the chart) and take profit at the price of 1.3495. Weak statistics for the UK does not give bulls confidence for an increase. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.3552, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3533 and 1.3495.
What's on the chart:
The thin green line is the key level at which you can place long positions in the GBP/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the GBP/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.
