Analysis of transactions in the GBP / USD pair
The test of 1.2291 occurred at the time when the MACD line was far below zero, limiting the downside potential of the pair. Similarly, purchases from 1.2216 were unsuccessful. No other signals appeared for the rest of the day.
Pound fell on Monday morning due to the weak service and composite PMI data in the UK. Meanwhile, similar reports from the US led to a rise in dollar, thanks to the figures exceeding expectations. This resulted in a further decline in GBP/USD.
Today, there are no statistics scheduled to be released in the UK, so expect continued pressure in pound in the morning. Notably, there are also no important reports during the US session, and whatever the US trade balance will be, it will not change the market situation.
For long positions:
Buy pound when the quote reaches 1.2204 (green line on the chart) and take profit at the price of 1.2268 (thicker green line on the chart). Growth could resume as buyers may show themselves near the December 2 low. 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 1.2165; however, the MACD line should be in the oversold area as only by that will the market reverse to 1.2204 and 1.2268.
For short positions:
Sell pound when the quote reaches 1.2155 (red line on the chart) and take profit at the price of 1.2088. Pressure will come back as there are no UK statistics scheduled to be released today. 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 1.2204; however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2155 and 1.2088.
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.