Pound continues to slide downward as there is nothing left to cling to at the monthly highs. And even though the speech of Bank of England representatives will be assessed by traders, most of the focus will be on the upcoming US statistics. Thus, it was best to ignore the sell signal around 1.2518 as the MACD line was already quite far from zero. In the afternoon, there is a report on US retail sales and industrial production, and growth on these indicators are likely to contribute to the decline of GBP/USD. The consumer sentiment index and inflation expectations from the University of Michigan will also be quite interesting as both are bound to lead to a massive sell-off of pound at the end of the week.
For long positions:
Buy pound when the quote reaches 1.2519 (green line on the chart) and take profit at the price of 1.2553 (thicker green line on the chart). However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Pound can also be bought at 1.2490, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2519 and 1.2553.
For short positions:
Sell pound when the quote reaches 1.2490 (red line on the chart) and take profit at the price of 1.2455. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.
Pound can also be sold at 1.2519, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2490 and 1.2455.
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.
