Analysis of transactions in the GBP / USD pair A signal to buy emerged after GBP/USD hit 1.2528. Coincidentally, the MACD line was just starting to move above zero, so the pair rose by more than 40 pips. It reached 1.2566, where a signal to sell was formed, which led to a fall of more than 100 pips. Meanwhile, the subsequent sell signal at 1.2495 did not lead to anything because the MACD line, at that time, was far from zero.
GBP/USD rose on Thursday morning because there was no statistics on the UK. However, sellers took advantage of good prices, pushing the pair to new yearly lows. The decrease slowed down in the afternoon amid very weak data on US GDP. There are also no statistics for the UK today, and this can play on the side of buyers. In addition, in the afternoon, the US will release reports on income and expenses, followed by the consumer sentiment index and inflation expectations index from the University of Michigan. If the figures show some decrease, demand for dollar will turn down, which will accordingly lead to a further rise in the pair. For long positions:Buy pound when the quote reaches 1.2537 (green line on the chart) and take profit at the price of 1.2590 (thicker green line on the chart). A rally is highly likely today markets because usually a correction every end of the see month. 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 1.2491, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2537 and 1.2590. For short positions:Sell pound when the quote reaches 1.2491 (red line on the chart) and take profit at the price of 1.2439. Pressure is likely to return on the market, but given its oversold condition, traders should be wary of selling at current yearly lows. They should also make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.2528, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.2495 and 1.2458.
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.
