Analysis of transactions in the GBP / USD pair
Data on the UK labor market is coming today, but it is unlikely to affect GBP/USD. Even so, trading decisions on the medium-term can be built up relative to the dynamics of changes.
No less important reports are data on the real estate market in the US, which has rather serious impacts on the economy. It is obvious that the sector will suffer this summer due to a sharp increase in interest rates, so it would be wrong to expect the data to support dollar.
For long positions:
Buy pound when the quote reaches 1.2055 (green line on the chart) and take profit at the price of 1.2090 (thicker green line on the chart). However, there is little chance for a rally today, unless the situation with household incomes improves.
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 1.2032, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2055 and 1.2090.
For short positions:
Sell pound when the quote reaches 1.2032 (red line on the chart) and take profit at the price of 1.1994. Pressure will persist if the UK reports weak statistics. This will continue the bear market.
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 1.2055, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2032 and 1.1994
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.
