Analysis of transactions and trading tips on GBP/USD
Further decline became limited because the test of 1.2157 coincided with the sharp downward movement of the MACD line from zero.
The decrease in UK average earnings led to a sell-off of pound, which may intensify today after the release of strong US statistics. Any increase in retail trade volume in the US will prompt a rise in dollar demand, which will result in the further depreciation of pound towards the weekly low. But if the data disappoints, the pair will return to the daily high. Statements from FOMC members John Williams and Michelle Bowman will also carry weight in the market.
For long positions:
Buy when pound hits 1.2172 (green line on the chart) and take profit at the price of 1.2212 (thicker green line on the chart). Growth will occur after very weak sales data in the US. However, when buying, ensure that the MACD line lies above zero or rises from it.
Pound can also be bought after two consecutive price tests of 1.2147, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2172 and 1.2212.
For short positions:
Sell when pound reaches 1.2147 (red line on the chart) and take profit at the price of 1.2105. Pressure will increase in the event of strong statistics in the US and firm comments from Fed representatives regarding future monetary policy. However, when selling, make sure that the MACD line lies below zero or drops down from it.
Pound can also be sold after two consecutive price tests of 1.2172, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2147 and 1.2105.
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.
