Analysis of transactions in the GBP / USD pair
A signal to sell emerged after GBP/USD hit 1.3012. Coincidentally, the MACD line was just starting to move below zero, so the pair fell by 30 pips. It reached the level of 1.2983. No other signal appeared for the rest of the day.
GBP/USD fell on Friday because the latest statistics on the UK economy were more terrible than expected. In addition, the statements of Bank of England Governor Andrew Bailey noted that the economy is rapidly moving into recession.
There is no important UK data yet again today, and the report on the balance of industrial orders is unlikely to help the pound rally. The best option would be to take short positions, although the test of 1.2718 could also be a good move in the market. In the afternoon, there are no statistics on the US, so expect the continuation of GBP/USD's bearish trend.
For long positions:
Buy pound when the quote reaches 1.2756 (green line on the chart) and take profit at the price of 1.2805 (thicker green line on the chart). However, there is little chance for a rally today because the trend is currently bearish. In any case, when buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.2718, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2756 and 1.2805.
For short positions:
Sell pound when the quote reaches 1.2718 (red line on the chart) and take profit at the price of 1.2661. Pressure is likely to return on the market, especially if the upcoming UK statistics are disappointing. However, 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 1.2756, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2718 and 1.2661.
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.
