Analysis of transactions in the GBP / USD pair
Although there are no reports that could change the current bullish trend in GBP/USD, there may be a slight downward correction this week because it is the beginning of the month, and last month closed almost at its highs. Traders better wait for a larger movement, especially since upcoming data on UK house prices and placement of 10-year bonds are unlikely to lead to a surge in volatility. Buyers will certainly become active around 1.2215 as that is where there was a strong upward movement yesterday. The US will also release a report on the level of vacancies and labor turnover, but it is of little interest. The speech of FOMC member Charles Evans, however, could lead to a small burst of volatility.
For long positions:
Buy pound when the quote reaches 1.2263 (green line on the chart) and take profit at the price of 1.2312 (thicker green line on the chart). There is a chance for a rally today, but only if the pair stays above 1.2215.
Take note that when buying, the MACD line should be above zero or is starting to rise from it. It is also possible to buy at 1.2217, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2263 and 1.2312.
For short positions:
Sell pound when the quote reaches 1.2217 (red line on the chart) and take profit at the price of 1.2166. Pressure will return if the attempt to reach new monthly highs fails.
Take note that when selling, the MACD line should be below zero or is starting to move down from it. Pound can also be sold at 1.2263, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2217 and 1.2166.
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 decision based on the current market situation is an inherently losing strategy for an intraday trader.
