Analysis of transactions in the GBP / USD pair
The test of 1.2170 occurred at a time when the MACD line had already gone down a lot from zero, which limited the downside potential of the pair. Similarly, the test of 1.2207 in the afternoon was no good as the MACD line was far above zero, limiting the upside potential. No other signals appeared for the rest of the day.
Once again, there are no statistics scheduled to be released in the UK today, so keep a close eye on how pound behaves around today's highs. And although the results of the survey about UK inflation are unlikely to fan volatility, it would not hurt to monitor it.
A failed attempt above 1.2275 will either bring back pressure on the pair or limit its upside potential later in the week. Meanwhile, strong data on US PPI for November will lead to a stronger dollar and accordingly, a decline in GBP/USD. The consumer sentiment data from the University of Michigan is likely to be ignored.
For long positions:
Buy pound when the quote reaches 1.2276 (green line on the chart) and take profit at the price of 1.2324 (thicker green line on the chart). Growth could resume as there is a newly formed buying 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 1.2228; however, the MACD line should be in the oversold area as only by that will the market reverse to 1.2276 and 1.2324.
For short positions:
Sell pound when the quote reaches 1.2228 (red line on the chart) and take profit at the price of 1.2053. Pressure will return if the attempt to consolidate at daily highs fails. 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 1.2276; however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2228 and 1.2165.
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.