Analysis of transactions and trading tips on GBP/USD
Further decline became limited because the test of 1.2672 took place at a time when the MACD line dropped sharply from zero.
Pound continued to face challenges in its upward movement despite awaiting the decision of the Bank of England. For example, weak PMI data for the UK provoked a decline. The Bank of England will release its monetary policy decision today, which could affect market sentiment. Upcoming US labor market data may also drive the direction of GBP/USD, as weak indicators, along with a hawkish position of the Bank of England, will strengthen pound.
For long positions:
Buy when pound hits 1.2647 (green line on the chart) and take profit at the price of 1.2726 (thicker green line on the chart). Growth will occur after a firm stance of the Bank of England and weak data from the US.
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 1.2622, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2647 and 1.2726.
For short positions:
Sell when pound reaches 1.2622 (red line on the chart) and take profit at the price of 1.2586. Pressure will increase in the case of strong US labor market statistics and a dovish stance from the Bank of England.
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 1.2647, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2622 and 1.2586.
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.
