Analysis of transactions in the GBP / USD pair
Pound tested 1.1440 at a time when the MACD line just starting to move above zero, which was a good signal to buy. This led to a price increase of around 20 pips and a test of 1.1411. By that time, the MACD line was quite far from zero, so the downside potential was limited. A little later, the pair tested the level again, but it ended with losses.
UK's public sector net borrowing and balance of industrial orders are due out today, but they are of little interest to the market. This is because all attention are focused on the Fed meeting, where interest rates are obviously going to be raised. But much more important are the accompanying statements and economic forecast, which may prompt an even greater increase in dollar.
For long positions:
Buy pound when the quote reaches 1.1371 (green line on the chart) and take profit at the price of 1.1419 (thicker green line on the chart). Growth is unlikely, but everything can change after the Fed meeting.
Take note that when buying, the MACD line should be above zero or is starting to rise from it. Pound can also be bought at 1.1324, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1371 and 1.1419.
For short positions:
Sell pound when the quote reaches 1.1324 (red line on the chart) and take profit at the price of 1.1283. Pressure will return if the Fed's aggressive policy continues.
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 1.1371, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1324 and 1.1283.
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.
