Analysis of transactions in the GBP / USD pair
The price test of 1.0653 occurred at the moment when the MACD line was just starting to move below zero, which was a good signal to sell. This led to a decrease of over 90 pips and a test of 1.0567. Then, buying after a rebound from that level gave at least 40 pips of profit.
There are no statistics on the UK today, so count on a further growth in GBP/USD. Yesterday's intervention of the Bank of England in the bond market definitely helped pound recover a bit, but the situation is still shaky, in which another massive sell-off may occur once the positive effect dries up. The upcoming US data on jobless claims and GDP may also raise dollar demand if the figures exceed expectations.
For long positions:
Buy pound when the quote reaches 1.0818 (green line on the chart) and take profit at the price of 1.0907 (thicker green line on the chart). Although growth is unlikely, a correction may occur if the Bank of England continues to interfere in the markets. In that case, traders could buy as long as the MACD line is above zero or is starting to rise from it.
Pound can also be bought at 1.0764, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0818 and 1.0907.
For short positions:
Sell pound when the quote reaches 1.0764 (red line on the chart) and take profit at the price of 1.0697. 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 1.0818, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.0764 and 1.0697.
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.
