Analysis of transactions and tips for trading GBP/USD
Pound tested 1.2490 when the MACD line was already far from zero, so the downward potential was limited. Sometime later, there was another test, and this time the signal was to buy but it only led to an upward movement of about 15 pips. Pressure returned on the market, and then a third test of the level occurred, which coincided with the moment when the MACD line had just started going down from zero. This allowed sell positions in the pair, which resulted in a price decrease of over 50 pips.
The economic calendar is empty today except for the speech of Bank of England MPC member John Cunliffe. However, there is little chance that he will say something new, so it is likely that pound will see another downward correction. The US will be releasing the NY Empire State manufacturing index, but it will be of little interest.
For long positions:
Buy pound when the level of 1.2433 (green line on the chart) is reached and take profit at the price of 1.2467 (thicker green line on the chart). Growth will be seen if there is consolidation at the daily highs in the morning. However, make sure that before buying, the MACD line is above zero or is starting to rise from it. Pound can also be bought at 1.2400, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2433 and 1.2467.
For short positions:
Sell pound when the level of 1.2400 (red line on the chart) is reached and take profit at the price of 1.2362. Pressure will return if there is no bullish activity around the daily highs. However, make sure that before selling, the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.2433, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2400 and 1.2362.
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.
