Analysis of transactions in the GBP / USD pair
The test of 1.1743 occurred at the time when the MACD line moved up quite a lot from zero, which limited the upward potential of the pair. Some time later, another test took place, but this time the MACD line was exiting the overbought area, which was a good reason to sell. The quote decreased, but not that strongly. In the afternoon, another test happened, during which the MACD line was moving above zero, leading to growth of about 50 pips.
Although the 3rd quarter GDP data for the UK pointed to a contraction in the economy, it was still better than the forecasts, so pound continued rising in the market. The UK manufacturing output also remained at a fairly good level, and the negative trade balance increased even more.
There are no statistics scheduled to be released today, so the situation should more or less level off. This means that traders can bet on the continuation of the bull market, but it is unlikely that it will develop as rapidly as at the end of last week. There are also no reports expected in the afternoon, so the day can go pretty smoothly.
For long positions:
Buy pound when the quote reaches 1.1782 (green line on the chart) and take profit at the price of 1.1872 (thicker green line on the chart). Growth may occur, following the current bullish trend. 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 1.1719, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.1782 and 1.1872.
For short positions:
Sell pound when the quote reaches 1.1719 (red line on the chart) and take profit at the price of 1.1650. Pressure may increase, but it is best to look for buying options from 1.1719. Also, 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 1.1782, however, the MACD line should be in the overbought area as only by that will the market reverse to 1.1719 and 1.1650.
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.