Analysis of transactions and tips for trading GBP/USD
The test of 1.2157, coinciding with the upward movement of the MACD line from zero, prompted a buy signal that led to a price increase of around 30 pips. The pair hit 1.2195 during the mid-US session.
The empty macroeconomic calendar in the US helped buyers continue the upward trend. However, today, the upcoming data on the US labor market and activity could negatively impact the intraday prospects. Figures on jobless claims, the unemployment rate, the business activity indicators, and the composite PMI for the UK could also lead to a significant downward correction, provided that the numbers turn out weaker than expected.
For long positions:
Buy when pound hits 1.2277 (green line on the chart) and take profit at the price of 1.2310 (thicker green line on the chart). Growth may occur in continuation of the upward trend, but this will be possible only after strong data from the UK.
When buying, ensure that the MACD line lies above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2247, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2277 and 1.2310.
For short positions:
Sell when the pound reaches 1.2247 (red line on the chart) and take profit at the price of 1.2219. Pressure may increase after weak statistics from the UK.
When selling, ensure that the MACD line lies below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2277, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2247 and 1.2219.
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.
