Analysis of transactions in the GBP / USD pair
GBP/USD reaching 1.2494 led to a buy signal in the market, but having the MACD line far from zero limited the upside potential of the pair. No other signal appeared for the rest of the day.
Surprisingly, the impact of the UK retail sales report did not last long, so pound did not even manage to hit new weekly highs. But today there are no UK statistics scheduled to be published, so GBP/USD is likely to increase after a surge during the Asian session. Another bullish factor is the speech of Bank of England Governor Andrew Bailey, which may hint at further actions of the central bank. The sharpness of the rally largely depends on how aggressive the bank can be on its monetary policy.
There are also no reports in the afternoon, so volatility is likely to be low during the US session.
For long positions:
Buy pound when the quote reaches 1.2573 (green line on the chart) and take profit at the price of 1.2633 (thicker green line on the chart). There is a chance for a rally today as there are no important UK statistics scheduled to be released, but it will be limited. Nevertheless, note that 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 1.2539, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2573 and 1.2633.
For short positions:
Sell pound when the quote reaches 1.2539 (red line on the chart) and take profit at the price of 1.2474. Pressure is likely to return if buyers are not active today, especially after the sharp surge during the Asian session. However, note that when selling, make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.2573, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2539 and 1.2474.
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.
