Analysis of transactions and tips for trading GBP/USD
Growth in GBP/USD was limited because the test of 1.2434 occurred when the MACD line was far above zero. However, after a short period of time, there was another test, during which the MACD line was already in the overbought area, giving off a signal to sell. This brought about 60 pips of profit.
The economic calendar being empty today will play in the favor of buyers who were active when the pair was declining yesterday. And although there are data scheduled to be released in the US this afternoon, the situation is unlikely to change as the NFIB Small Business Optimism report has little to do with the market. Much more interesting are the upcoming statements of FOMC members Austan Goolsbee and Patrick Harker, which may address the optimism of investors and more active inflation reduction. Those, to some extent, may affect demand for dollar.
For long positions:
Buy pound when the quote reaches 1.2439 (green line on the chart) and take profit at the price of 1.2475 (thicker green line on the chart). Growth could occur in the morning, but pressure will resume during the US trading session. Also remember that before buying, make sure that the MACD line is above zero or is starting to rise from it. Pound can also be bought at 1.2409, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2439 and 1.2475.
For short positions:
Sell pound when the quote reaches 1.2409 (red line on the chart) and take profit at the price of 1.2378. Pressure will return if the attempt to consolidate above the daily high fails. Also remember that before selling, make sure that the MACD line is under zero or is starting to move down from it. Pound can also be sold at 1.2439, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2409 and 1.2378.
What's on the chart:
Thin green line - entry price at which you can buy GBP/USD
Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line - entry price at which you can sell GBP/USD
Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
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.
