Analysis of transactions in the GBP / USD pair
A signal to buy emerged after GBP/USD hit 1.3079. However, there was no sharp increase because the MACD line being far from zero limited the upside potential of the pair. Subsequent tests of this range throughout the day also failed.
Sellers are clearly not enough to resume the bear market, so GBP/USD is likely to increase today. The Fed minutes released yesterday also coincided with expectations, so there was no sharp movement in the pair.
A report on UK house prices will be published today, followed by a speech from Bank of England member Huw Pill. There will also be statements from Fed members James Bullard, Charles Evans and Raphael Bostic, but they are also unlikely to have much effect on the market. As for statistics, data on US jobless claims and consumer spending will be released, which may support the dollar, if not maintain the balance in the market.
For long positions:
Buy pound when the quote reaches 1.3095 (green line on the chart) and take profit at the price of 1.3129 (thicker green line on the chart). A rally will occur if the attempt to break the lower border of the side channel fails. However, when buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.3068, but the MACD line should be in the oversold area as only by that will the market reverse to 1.3095 and 1.3129.
For short positions:
Sell pound when the quote reaches 1.3068 (red line on the chart) and take profit at the price of 1.3026. However, 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 1.3095, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3068 and 1.3026.
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.