Analysis of transactions in the GBP / USD pair
The test of 1.1464 occurred at the time when the MACD line had already gone down a lot from zero, which limited the further downside potential of the pair. Some time later, another test took place, but this time the MACD line was in the overbought area, so pound grew by about 40 pips. Selling for a rebound from 1.1585 in the afternoon led to a price decrease of around 50 pips.
The lack of statistics on the UK did not become a reason for opening short positions, while the start of the midterm elections in the US fueled risk appetite and weakened dollar.
There is nothing important on the UK today other than the speeches of Bank of England members Jonathan Haskel and John Cunliffe. Most likely, Cunliffe will talk about the further course of the monetary policy, which may negatively affect pound. In the afternoon, there is also no important fundamental statistics, so the market will return to balance ahead of tomorrow's inflation data in the US. Statements by FOMC members John Williams and Thomas Barkin, along with US wholesale inventory changes, will be of little interest, and only the next election results will lead to a surge in volatility.
For long positions:
Buy pound when the quote reaches 1.1563 (green line on the chart) and take profit at the price of 1.1640 (thicker green line on the chart). But growth is unlikely to occur today, so be careful when taking long positions. Also, remember that when buying, the MACD line should be above zero or is starting to rise from it.
Pound can also be bought at 1.1504, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.1563 and 1.1640.
For short positions:
Sell pound when the quote reaches 1.1504 (red line on the chart) and take profit at the price of 1.1434. Pressure will return after a clear lack of signs of further growth, especially ahead of tomorrow's US statistics. 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 1.1563, however, the MACD line should be in the overbought area as only by that will the market reverse to 1.1504 and 1.1434.
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.