Analysis of transactions and tips for trading GBP/USD
The test of 1.2565 took place at a time when the MACD line moved downward from zero, prompting a signal to sell. As a result, the pair plummeted to the target level of 1.2514. Buying on the rebound led to a 30-pip increase in addition to the 40-pip gain after the pair's fall.
Strong data on the US labor market provoked a sharp decline in pound. However, an increasing number of traders believe that the Fed will begin to lower interest rates next year, so the decline quickly halted.
The empty macroeconomic calendar today will keep trading within a sideways channel.
For long positions:
Buy when pound hits 1.2568 (green line on the chart) and take profit at the price of 1.2602 (thicker green line on the chart). Growth may not occur, especially considering the low trading volume.
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 1.2531, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2568 and 1.2602.
For short positions:
Sell when pound reaches 1.2531 (red line on the chart) and take profit at the price of 1.2495. Pressure will return in the case of an unsuccessful attempt to consolidate around the local daily high.
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 1.2568, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2531 and 1.2495.
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.
