Analysis of transactions in the GBP / USD pair
When GBP/USD tested 1.2217, the MACD was far from zero, so the downside potential was limited. No other signals appeared for the rest of the day.
Data on UK house prices and placement of 10-year bonds were ignored by the market because everyone focused more on the escalating conflict between China and the US. Published statistics on the US were also of little interest
Today, a number of statistics are coming, and these are business activity data and PMI reports in the UK and the US. Considering that the UK is one of the few countries where activity continues to increase, it is likely that pound will see a slight upward movement in the morning. However, decreasing risk appetite will push quotes down this week. Also ahead is a speech from Fed representative Patrick Harker, so look forward to further sell-offs in GBP/USD.
For long positions:
Buy pound when the quote reaches 1.2185 (green line on the chart) and take profit at the price of 1.2235 (thicker green line on the chart). There is a chance for a rally today, but only after strong statistics on the UK. The increase, however, is unlikely to last long.
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 1.2139, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2185 and 1.2235.
For short positions:
Sell pound when the quote reaches 1.2139 (red line on the chart) and take profit at the price of 1.2076. Pressure will increase if the political conflict between China and the US escalates.
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 1.2185, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2139 and 1.2076.
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.
