Analysis of transactions in the GBP / USD pair
The first test of 1.2167 occurred when the MACD line was far above zero, so the upside potential was limited. Sometime later, another test took palace, but this time the MACD line was in the overbought area, which was a pretty good signal to sell. It resulted in a price decrease of over 50 pips. No other signals appeared for the rest of the day.
Once again, there are no statistics scheduled to be released in the UK today, so the upward trend may be limited in the morning. Then, in the afternoon, there is a speech from Fed Chairman Jerome Powell, who may continue to push the idea that there needs to be further rate increases in the US. That will return demand for dollar and lead to a decline in GBP/USD.
For long positions:
Buy pound when the quote reaches 1.2192 (green line on the chart) and take profit at the price of 1.2267 (thicker green line on the chart). Growth will occur unless there are no good statistics from the UK. Also, 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 1.2117, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.2192 and 1.2267.
For short positions:
Sell pound when the quote reaches 1.2117 (red line on the chart) and take profit at the price of 1.2038. Pressure will return if Fed Chairman Jerome Powell is once again hawkish on monetary policy. 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 1.2192, however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2117 and 1.2038.
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.
