Analysis of transactions in the GBP / USD pair
Recent market signals are becoming more and more contradictory, which may mean that GBP / USD is about to find its bottom. For example, indicators pointed to sell yesterday, but traders had to ignore it because the MACD line was far from zero. There was also a time that the pair rose 10 pips, but it quickly went down again. It seems that market signals are no longer clear.
A stronger rally may be seen today as there are no UK statistics scheduled to be published. There may even be an upward rebound if bulls once again protect the level of 1.3202.
In the afternoon, the US will publish data on jobless claims and wholesale inventories, but they are unlikely to provide support for dollar.
For long positions:
Buy pound when the quote reaches 1.3222 (green line on the chart) and take profit at the price of 1.3260 (thicker green line on the chart). A rally will jump-start the bullish correction anticipated by buyers for a long time.
Before buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.3202, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3222 and 1.3260.
For short positions:
Sell pound when the quote reaches 1.3202 (red line on the chart) and take profit at the price of 1.3165. Dropping below the weekly low will bring more pressure on GBP / USD.
Before selling, make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.3222, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3202 and 1.3165.
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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.