Analysis of transactions in the GBP / USD pair

The price test of 1.1309 occurred at the moment when the MACD line was far from zero, which should have limited the downward potential of the pair. However, the quote fell to 1.1253. Purchases made at this level led to an increase of about 20 pips.

The pair resumed falling after the rebound, but no other signals appeared for the rest of the day.

PMI for the UK construction sector did not help pound much, while the speech of Bank of England MPC member Jonathan Haskel provoked a sell-off before important reports.

There are no important reports scheduled to be released today, except for the UK house price index. There will also be a speech from Bank of England Deputy Governor Sir David Ramsden, but that is unlikely to shake the market. In the afternoon, a further decline in the pound could occur if employment data in the US turns out to be better than forecasts. But if the labor market sags seriously, risk appetite will surge, which will lead to an increase in GBP/USD. The speech of FOMC member John Williams will be ignored by the market.

For long positions:

Buy pound when the quote reaches 1.1177 (green line on the chart) and take profit at the price of 1.1280 (thicker green line on the chart). Growth may occur as long as the data on the US labor market is weaker than expected. But take note that when buying, the MACD line should be above zero or is starting to rise from it.

Pound can also be bought at 1.1111, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.1177 and 1.1280.

For short positions:

Sell pound when the quote reaches 1.1111 (red line on the chart) and take profit at the price of 1.1058. Pressure may return if statistics from the US exceed expectations. 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 1.1177, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1111 and 1.1058.

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.