Analysis of transactions and tips for trading GBP/USD
The test of 1.2003 occurred when the MACD line was far from zero, so there was no signal to sell. No other signals appeared for the rest of the day.
Once again, there are no UK statistics scheduled to be released today, so market players will focus on the speech of the Bank of England's deputy governor for monetary policy. For that reason, pressure on pound may ease, especially if the bulls defend the monthly lows. However, long-term inventory change and outstanding home sales from the US are coming out in the afternoon, which will play in dollar's favor as stronger statistics will prompt the Fed to keep raising rates. The speech of FOMC member Philip Jefferson is unlikely to lead to a strong surge in volatility.
For long positions:
Buy pound when the quote reaches 1.1945 (green line on the chart) and take profit at the price of 1.1986 (thicker green line on the chart). Growth is possible; however, it will only be an upward correction at the beginning of this week. Nevertheless, make sure that when buying, the MACD line is above zero or is starting to rise from it. Pound can also be bought at 1.1916, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1945 and 1.1986.
For short positions:
Sell pound when the quote reaches 1.1916 (red line on the chart) and take profit at the price of 1.1884. Pressure will return if the pair does not rise in the morning. However, when selling, make sure that the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.1945, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1916 and 1.1884.
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.
