Analysis of transactions in the GBP / USD pair
Markets are anticipating the inflation data in the UK, which will likely show a continued rise for the month of September. This will further complicate the work of the Bank of England, keeping it torn between saving the bond market and fighting price pressure. Reports on the consumer price index and the UK producer price index will play a key role, while the speech of the Bank of England MPC member Katherine L. Mann will be of little interest.
Data on the US real estate market is also due, as well as the volume of building permits issued and new foundations laid. A decline in these indicators will return pressure on dollar. The speech of FOMC member Neel Kashkari is unlikely to affect the markets.
For long positions:
Buy pound when the quote reaches 1.1325 (green line on the chart) and take profit at the price of 1.1407 (thicker green line on the chart). Growth will occur as long as inflationary indicators are weaker than expected. But remember that when buying, the MACD line should be above zero or is starting to rise from it.
Pound can also be bought at 1.1266, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.1325 and 1.1407.
For short positions:
Sell pound when the quote reaches 1.1266 (red line on the chart) and take profit at the price of 1.1169. Pressure will return if the situation with rising prices worsens. 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 1.1325, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1266 and 1.1169.
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.