Analysis of transactions and tips for trading GBP/USD
The test of 1.2717 took place at a time when the MACD line started to fall from zero. This provoked a sell signal, leading to a price decrease of over 25 pips. Meanwhile, purchases on the rebound from 1.2682 resulted in a rise of around 15 pips.
UK retail sales data had no impact on the market, but strong GDP report from the US led to a massive sell-off of pound, from which traders have yet to recover. It seems like pressure will persist given the empty macroeconomic calendar in the UK today.
For long positions:
Buy when pound hits 1.2708 (green line on the chart) and take profit at the price of 1.2739 (thicker green line on the chart). Growth will occur if traders manage to defend yesterday's low.
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 1.2678, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2708 and 1.2739.
For short positions:
Sell when pound reaches 1.2678 (red line on the chart) and take profit at the price of 1.2647. Bears may continue yesterday's trend, so 1.2678 remains the last hope for buyers to maintain their advantage in the market.
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 1.2708, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2678 and 1.2647.
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.
