Analysis of transactions and tips for trading GBP/USD
The test of 1.2314 occurred when the MACD line was just starting to move below zero, which was a pretty good signal to sell. It led to a price decrease of around 25 pips. Sometime later, another test took place, but this time it was at 1.2344 and the MACD line was moving up from zero. It was a good signal to buy and has resulted in a price increase of about 30 pips.
GBP/USD did not decline even though the UK producer price index and output price index showed a slight decline in their figures. As for today, there is a chance for growth because there is nothing to look out for apart from the UK labor productivity report. Buyers will get a chance to see the pair continue to rise, but this is only in the morning. The US is scheduled to release its reports on orders for durable goods, foreign trade balance, and Q4 GDP change in the afternoon, which could prompt a rise in dollar provided that the figures are better than expected. Weekly jobless claims and new home sales data are also important as good readings will play in favor of USD.
For long positions:
Buy pound when the quote reaches 1.2415 (green line on the chart) and take profit at the price of 1.2477 (thicker green line on the chart). Growth could occur as there are no statistics scheduled to be released today. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Pound can be bought at 1.2371, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2415 and 1.2477.
For short positions:
Sell pound when the quote reaches 1.2371 (red line on the chart) and take profit at the price of 1.2314. Pressure will increase if GDP data in the US exceeds expectations. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.2415, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2371 and 1.2314.
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.