Analysis of transactions in the GBP / USD pair
A signal to sell emerged after GBP/USD hit 1.3150. Since there were quite a lot of sellers in the market after the meeting of the Bank of England and the MACD line was below zero, the pair collapsed by more than 40 pips. In the afternoon, there was a signal to buy at 1.3182, but the MACD line was far from zero, so the upside potential was limited.
Reports on the volume of home sales in the US secondary market and the index of leading indicators did not affect the market in any way because they did not differ too much from the forecasts of economists. Keeping GBP/USD in the side channel will prompt a rally, especially amid potential rate hikes by the Bank of England.
There are no US and UK statistics scheduled to be released today, so it is best to continue trading in the side channel.
For long positions:
Buy pound when the quote reaches 1.3168 (green line on the chart) and take profit at the price of 1.3215 (thicker green line on the chart). A rally will occur if 1.3168 is tested. 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 1.3141, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3168 and 1.3215.
For short positions:
Sell pound when the quote reaches 1.3141 (red line on the chart) and take profit at the price of 1.3100. Pressure will return at any moment, so there is no need to hurry with long positions. 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 1.3168, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3141 and 1.3100.
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.
