Analysis of transactions and tips for trading GBP/USD
The test of 1.2646 occurred during the rise of the MACD line from zero. This prompted a buy signal, which resulted in a price increase of over 40 pips.
Weak US GDP report for the third quarter caused the pair to rally in the afternoon. Meanwhile, data on UK net borrowing and retail sales seem to have been ignored by traders.
Pound may move sideways today, but the changes in retail sales, fuel costs, GDP volume, and the balance of payments may change the situation. A downward revision in economic growth will likely provoke a decline in pound, while good numbers will open quite good chances for a further price increase.
For long positions:
Buy when pound hits 1.2692 (green line on the chart) and take profit at the price of 1.2729 (thicker green line on the chart). Growth will occur 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 1.2670, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2692 and 1.2729.
For short positions:
Sell when pound reaches 1.2670 (red line on the chart) and take profit at the price of 1.2635. Pressure will return in the case of weak UK reports and unsuccessful attempts to consolidate at the 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 1.2692, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2670 and 1.2635.
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.
