The test of 1.2527 occurred when the MACD line was just beginning to move above zero, which was a good reason to buy. However, there was not much price increase.
UK GDP data did not disappoint, but it did not help pound continue its rally. Nevertheless, the figure rose by 0.1% compared to the fourth quarter of 2022, while the data for March showed a decrease of only 0.3%, following no changes in February and a slight increase in January.
Ahead are reports on consumer sentiment from the University of Michigan and inflation expectations in the US, which could prompt a further decline, provided that the data show some growth. It will likely trigger buy stop orders, leading to massive sell-offs in GBP/USD.
For long positions:
Buy pound when the quote reaches 1.2538 (green line on the chart) and take profit at the price of 1.2599 (thicker green line on the chart). Growth will be seen amid weak statistics and closure of trading positions. However, before buying, make sure that the MACD line is above zero and is starting to rise from it. Pound can also be bought after the level of 1.2505 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2538 and 1.2599.
For short positions:
Sell pound when the quote reaches 1.2505 (red line on the chart) and take profit at the price of 1.2461. Pressure could return if there is strong US data. 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 after the level of 1.2538 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2505 and 1.2461.
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.
