Analysis of transactions in the GBP / USD pair
The pair tested 1.2022 at the time when the MACD line was just starting to move below zero, which seemed like a good signal to sell. However, the downward movement never took place, resulting in losses. A similar scenario occurred in the afternoon, when the pair tested 1.2061. It was only when the quote hit 1.2116 that the pair began to decline, falling by over 90 pips.
Once again, there are no statistics due out in the UK, so pressure could return in GBP/USD at any moment. And considering how the bears defended yesterday's weekly highs, it is likely that they are very active in the market. In the US, the weekly data on jobless claims will be released this afternoon, but it will be of little interest.
For long positions:
Buy pound when the quote reaches 1.2045 (green line on the chart) and take profit at the price of 1.2085 (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 1.2009, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.2045 and 1.2085.
For short positions:
Sell pound when the quote reaches 1.2009 (red line on the chart) and take profit at the price of 1.1965. Pressure will return if there is no bullish activity above 1.2045. 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 1.2045, however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2009 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.
