Analysis of transactions in the GBP / USD pair
Pound tested 1.1859 at a time when the MACD was far from zero, which limited the upside potential of the pair. Sometime later, it tested 1.1824. But this time, although the MACD line was far from zero, quotes continued to fall.
The lack of statistics in the UK did not help pound yesterday. Most likely, the same will happen today as there are also no important reports scheduled to be released. In the afternoon, a lot will depend on Fed Chairman Jerome Powell's speech at the Jackson Hole symposium, as well as on the data on income and expenses in the US. Following is a report on the foreign trade balance, but it will be of little interest. If Powell remains hawkish on the monetary policy, pound will fall further and hit new yearly lows.
For long positions:
Buy pound when the quote reaches 1.1824 (green line on the chart) and take profit at the price of 1.1889 (thicker green line on the chart). Growth could occur, but only if Fed Chairman Jerome Powell is dovish in his speech at the Jackson Hole symposium.
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 1.1795, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1824 and 1.1889.
For short positions:
Sell pound when the quote reaches 1.1795 (red line on the chart) and take profit at the price of 1.1758,. Pressure could return at any moment, especially if the Fed remains hawkish on their monetary policy.
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 1.1824, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.1795 and 1.1758.
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.