Analysis of transactions in the GBP / USD pair

There is nothing interesting today, so pound will certainly rise as optimism is positive, thanks to the actions of the Bank of England. Quotes may even return to the area of 1.14 and 1.15. But the speeches of Fed representatives may cool the ardor of buyers a little as it will most likely mention the need to raise interest rates by another 1.25% before the end of this year. Meanwhile, data on manufacturing orders in the US, which is scheduled to be released in the afternoon, will not be of great interest to traders, so there is a chance for a continued rise in GBP/USD.

For long positions:

Buy pound when the quote reaches 1.1343 (green line on the chart) and take profit at the price of 1.1418 (thicker green line on the chart). Growth will occur, but it will stop as soon as negative data appears. Nevertheless, traders could buy as long as the MACD line is above zero or is starting to rise from it.

Pound can also be bought at 1.1295, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1343 and 1.1418.

For short positions:

Sell pound when the quote reaches 1.1295 (red line on the chart) and take profit at the price of 1.1221. Pressure will return in case of weak statistics and a decrease in risk appetite due to geopolitical tensions. 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 1.1343, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1295 and 1.1221.

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.