Analysis of transactions in the GBP / USD pair
The pair tested 1.2100 at the time when the MACD line was just starting to move above zero, which seemed like a good signal to buy. However, the upward movement never took place, resulting in losses. The same thing occurred in the afternoon, when the pair tested 1.2061. At first, it happened when the MACD was far from zero, so the downside potential was limited. But on its second test, the MACD line was in the oversold area, so trading positions ended in losses again. It was only at the end of the day that everything was compensated, when traders bought the rebound from 1.2007.
Once again, there are no statistics due out in the UK, so pressure could return in GBP/USD at any moment. However, quotes are already around December lows so there is little chance that traders will dare sell at the end of the year. And although the US is publishing its data on pending home sales today, it will not have much impact on the pair as the problems in the real estate market signal a recession, limiting the upside potential of dollar. This could even lead to a rise in GBP/USD.
For long positions:
Buy pound when the quote reaches 1.2061 (green line on the chart) and take profit at the price of 1.2116 (thicker green line on the chart). Growth will occur if the yearly lows are not broken. But 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 1.2022, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.2061 and 1.2116.
For short positions:
Sell pound when the quote reaches 1.2022 (red line on the chart) and take profit at the price of 1.1965. Pressure will return if there is no bullish activity above 1.2060. 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 1.2061, however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2022 and 1.1965.
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.
