Analysis of transactions in the GBP / USD pair

Pound has all the chances to continue rising today as long as PMI data in the UK exceeds expectations. But if the reports fall short of forecasts, pressure will increase, which will lead to a strong decline towards yesterday's lows. The upcoming employment report and weekly jobless claims in the US could also put further pressure on the market as an increase in the figures will provoke a rise in dollar. This will push GBP/USD within a horizontal channel. Data on the US foreign trade balance will be of little interest.

For long positions:

Buy pound when the quote reaches 1.2049 (green line on the chart) and take profit at the price of 1.2100 (thicker green line on the chart). Growth will occur if data on PMI is strong. 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 1.2007, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.2049 and 1.2100.

For short positions:

Sell pound when the quote reaches 1.2007 (red line on the chart) and take profit at the price of 1.1960. Pressure will return if the UK reports weak economic statistics. 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 1.2049, however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2007 and 1.1960.

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.