Analysis of transactions in the GBP / USD pair
The test of 1.1197 happened when the MACD line was just starting to move below zero, which was a good reason to sell. However, things did not come as expected, and after a decrease of just 15 pips, demand for the currency returned. In the afternoon, the test of 1.1255 took place when the MACD was far enough from zero, so there was no signal to buy.
Pound rose sharply after news emerged that UK Prime Minister Liz Truss also resigned. However, bulls failed to cling to the daily highs, and strong data on the US labor market returned demand for dollar. Most likely, a real fight for weekly lows will unfold, which will allow pound to correct strongly today.
Data on UK retail sales is due this morning, followed by the report on the net volume of borrowed funds of the public sector. If the figures disappoint, pound is likely to fall heavily. In the afternoon, there are no statistics that could negatively affect pound, but it is still necessary to listen to the speech of FOMC member John Williams. Although he is unlikely to say anything new regarding monetary policy, nothing more interesting will come out during the US trading session.
For long positions:
Buy pound when the quote reaches 1.1222 (green line on the chart) and take profit at the price of 1.1295 (thicker green line on the chart). Growth could occur, but it is unlikely to be strong and stable. Nevertheless, remember that when buying, the MACD line should be above zero or is starting to rise from it.
Pound can also be bought at 1.1166, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.1222 and 1.1295.
For short positions:
Sell pound when the quote reaches 1.1166 (red line on the chart) and take profit at the price of 1.1103. Pressure will return if there is no demand from buyers in the morning. 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 1.1222, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1166 and 1.1103.
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.
