Analysis of transactions in the GBP / USD pair
The price test of 1.1283 happened when the MACD line was far below zero, so the downside potential was limited. Sometime later, a similar test took place, but this time the signal was to buy, which brought losses. Only in the afternoon, during the purchases at 1.1195, did traders manage to earn and offset the losses seen earlier.
The Bank of England did not extend its bond buying program, forcing the UK government to abandon the idea of tax cuts. This calmed the financial markets and gave confidence to the pound.
Today, there are no statistics for the UK that will play on the side of the buyers, so continue betting on the growth of the pound and on a return to monthly highs. The US will release reports on the NY Empire State Manufacturing Index and the US federal budget execution, but they will be of little interest.
For long positions:
Buy pound when the quote reaches 1.1304 (green line on the chart) and take profit at the price of 1.1407 (thicker green line on the chart). Growth will occur as long as the decision of the UK government does not worsen the already difficult situation in the financial market. But remember that when buying, the MACD line should be above zero or is starting to rise from it.
Pound can also be bought at 1.1243, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.1304 and 1.1407.
For short positions:
Sell pound when the quote reaches 1.1243 (red line on the chart) and take profit at the price of 1.1157. Pressure will return if the attempt to rise above 1.1305 fails. 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 1.1304, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1243 and 1.1157.
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.
