Analysis of transactions in the GBP / USD pair
Pound tested 1.1821 at a time when the MACD was just starting to move above zero, which was a good signal to buy. However, the quote did not increase much, and after rising by just 10 pips, it returned to 1.1821, then completely collapsed to 1.1787. This level was tested, but the MACD line was far from zero, so the downside potential was limited.
The lack of statistics in the UK led to a decline in GBP/USD yesterday morning, but it was offset by weak data on the US economy released in the afternoon. It is likely that the bullish dynamics will remain today because even though there are no important reports scheduled to be released, the pair has recovered from the yearly lows. And even though retail sales data in the UK will not lead to a strong surge in volatility, US reports on GDP and jobless claims will set the direction of the market. But the start of the Jackson Hole symposium will be much more interesting as the meeting will certainly affect sentiment.
For long positions:
Buy pound when the quote reaches 1.1859 (green line on the chart) and take profit at the price of 1.1911 (thicker green line on the chart). Growth could occur, but only in the morning.
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 1.1824, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1859 and 1.1911.
For short positions:
Sell pound when the quote reaches 1.1824 (red line on the chart) and take profit at the price of 1.1784. Pressure could return at any moment, especially if the US reports better-than-expected economic data, and if the Fed remains hawkish on their monetary policy.
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 1.1859, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1824 and 1.1784.
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.
