Analysis of transactions in the GBP / USD pair
The test of 1.2204 occurred at the time when the MACD line was just starting to move up from zero, which was a good reason to buy. However, pound only rose by 10 pips before going down again. Sometime later, a similar signal took place, but this time the pound climbed by as much as 30 pips. No other signals appeared for the rest of the day.
Once again, there are no statistics scheduled to be released in the UK today, so expect continued pressure on the pound, but keep a close eye on what is happening in the UK, especially in the political area. Unrest related to disappointing wages and prices will probably discourage traders from buying pound again.
There is nothing scheduled in the afternoon that will have a significant impact on the market. Changes in US non-manufacturing labor productivity and labor costs are of little interest.
For long positions:
Buy pound when the quote reaches 1.2149 (green line on the chart) and take profit at the price of 1.2212 (thicker green line on the chart). Growth could resume if there are positive news, especially in the political area. But remember that when buying, the MACD line should be above zero or is starting to rise from it.
Pound can also be bought at 1.2106; however, the MACD line should be in the oversold area as only by that will the market reverse to 1.2149 and 1.2212.
For short positions:
Sell pound when the quote reaches 1.2106 (red line on the chart) and take profit at the price of 1.2053. Pressure will return if the attempt to consolidate at daily highs fails. But take note that when selling, the MACD line should be below zero or is starting to move down from it.
Pound can also be sold at 1.2149; however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2106 and 1.2053.
What's on the chart:
The thin green line is the key level at which you can place long positions in the GBP/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the GBP/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
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.