Analysis of transactions in the GBP / USD pair
GBP/USD reaching 1.2618 prompted a sell signal in the market, however, having the MACD line far from zero limited the downside potential of the pair. The second test was more successful as the buy signal led to an increase, but the pair went back to 1.2618 again, where a sell signal emerged. After a drop of just over 20 points, the pressure eased and traders began to take profits.
The absence of statistics in the UK did not help pound last Friday, and growth took place only after the release of weak data on US income. The speech of FOMC member James Bullard was also ignored by the market.
Today, the only statistics scheduled to be released in the UK is the house price index, but it is unlikely to help pound. Nevertheless, there are chances for buyers to break through monthly highs, though there are not many as it is already the end of this month. In the afternoon, volatility will drop as it is a public holiday in the US and the markets will be closed.
For long positions:
Buy pound when the quote reaches 1.2654 (green line on the chart) and take profit at the price of 1.2696 (thicker green line on the chart). There is a chance for a rally today because there are no statistics scheduled to be released. However, 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 1.2626, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2654 and 1.2696.
For short positions:
Sell pound when the quote reaches 1.2626 (red line on the chart) and take profit at the price of 1.2588. Pressure will return as it is unlikely that new active purchases will be seen in the market. 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 1.2654, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2626 and 1.2588.
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.
