Analysis of transactions in the GBP / USD pair
For the whole day, pound did not give clear signals to enter the market, so nothing was achieved.
There are no statistics on the UK today, so count on a further decline in GBP/USD. Sellers are obviously becoming more and more active that it would not be a surprise anymore if pound hits yearly lows by the end of the week. But the upcoming speeches of Bank of England members may stimulate a slight decline, especially if they address the issue on taxes and household payments. The US will also release reports in the afternoon about the foreign trade balance and volume of pending home sales, followed by speeches from Fed members Raphael Bostic and Jerome Powell, which may help the dollar cope with any problems.
For long positions:
Buy pound when the quote reaches 1.0731 (green line on the chart) and take profit at the price of 1.0823 (thicker green line on the chart). Although growth is unlikely, traders could still buy as long as the MACD line is above zero or is starting to rise from it.
Pound can also be bought at 1.0653, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0731 and 1.0823.
For short positions:
Sell pound when the quote reaches 1.0653 (red line on the chart) and take profit at the price of 1.0567. Pressure could return at any moment, but 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 1.0731, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0653 and 1.0567.
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.
