Analysis of transactions in the GBP / USD pair
GBP/USD reaching 1.2157 led to a sell signal in the market, however, having the MACD line far from zero limited the downside potential of the pair. Purchases at 1.2095 also did not bring the expected result.
Latest statistics in the UK disappointed traders so much that pound collapsed strongly in the forex market. Obviously, the weak performance in the labor market is affecting the country's economic growth, which is pretty bad for GBP/USD.
There are no important reports scheduled to be released in the UK today, so there is a chance for a correction. But it is unlikely to be protracted and lengthy, especially because ahead is the policy meetings of the US and UK central banks. In the afternoon, the US will publish the report on retail sales for May, followed by the Fed's decision on monetary policy. A more aggressive action by the central bank will raise dollar demand, which will lead to a decrease in GBP/USD. Economic forecasts and Jerome Powell's press conference will also have a significant impact on the market. Meanwhile, the meeting of the Bank of England will take place tomorrow.
For long positions:
Buy pound when the quote reaches 1.2052 (green line on the chart) and take profit at the price of 1.2125 (thicker green line on the chart). There is a chance for a rally today, but it will only be a slight correction because ahead is an important US data. 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 1.1990, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2052 and 1.2125.
For short positions:
Sell pound when the quote reaches 1.1990 (red line on the chart) and take profit at the price of 1.1917. Pressure will return at any moment, especially if the Fed is more hawkish. However, 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 1.2052, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1990 and 1.1917.
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.
