Analysis of transactions and trading tips on GBP/USD
Further decline became limited as the test of 1.2548 took place at a time when the MACD line moved downward quite strongly from zero. Shortly after, another test occurred, and this time the MACD moved out of the oversold area, provoking a buy signal. However, no sharp price increase happened. Weak GDP data for the UK likely affected bullish sentiment.
Data on retail sales, jobless claims, industrial production and the Empire Manufacturing index will come out this afternoon, and strong figures, especially on retail sales, will lead to a sharp rise in dollar and a decline in pound.
For long positions:
Buy when pound hits 1.2571 (green line on the chart) and take profit at the price of 1.2617 (thicker green line on the chart). Growth will occur after very weak US statistics.
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 1.2541, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2571 and 1.2617.
For short positions:
Sell when pound reaches 1.2541 (red line on the chart) and take profit at the price of 1.2494. Pressure will increase in the case of strong retail sales data.
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 1.2571, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2541 and 1.2494.
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.
