Analysis of transactions in the GBP / USD pair
When GBP/USD tested 1.2163, the MACD had just started to move above zero, which was a good signal to buy. However, there was no active growth, and it was only during the second test that the pair rose by around 30 pips. No other signals appeared for the rest of the day.
Pound came under pressure after the Bank of England decided to raise interest rates by 0.5%. The move is very bad for the economy because debt is growing and the standard of living is falling. The negative forecasts for inflation and economic growth also confirmed the economy's slide into recession.
Today, the UK will release a report on house prices, followed by a speech from MPC member Huw Pill. However, they will be of little interest because markets will focus more on upcoming US data on employment. Better-than-expected figures will push GBP/USD down, while weaker readings will help buyers cope with further pressure, which will open the possibility of reaching new monthly highs. The speech of FOMC member Thomas Barkin will be of little interest
For long positions:
Buy pound when the quote reaches 1.2150 (green line on the chart) and take profit at the price of 1.2201 (thicker green line on the chart). There is a chance for a rally today, but only if the upcoming US data fall short of forecasts.
Take note that when buying, the MACD line should be above zero or is starting to rise from it. It is also possible to buy at 1.2125, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2150 and 1.2201.
For short positions:
Sell pound when the quote reaches 1.2125 (red line on the chart) and take profit at the price of 1.2078. Pressure will increase if the US releases a strong employment report for the month of July.
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 1.2150, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2125 and 1.2078.
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.