Analysis of transactions in the GBP / USD pair
There were no market signals on Monday because the pair failed to test any of the presumed levels.
There are no statistics due out in the UK today, so the upward correction in GBP/USD could end at any moment. Also, the upcoming US reports on the foreign trade balance, inventories in wholesale warehouses and housing price index are of little interest, but given the low trading volume, figures that are better than expected could lead the pair lower. A break of yesterday's lows will add pressure on the market, which will quickly push the pair towards monthly support levels. This is why traders should be careful when buying at the current highs.
For long positions:
Buy pound when the quote reaches 1.2100 (green line on the chart) and take profit at the price of 1.2141 (thicker green line on the chart). Growth could occur, but do not expect strong rises. Buy when the MACD line should be above zero or is starting to rise from it. Pound can also be bought at 1.2061, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.2100 and 1.2141.
For short positions:
Sell pound when the quote reaches 1.2061 (red line on the chart) and take profit at the price of 1.2007. Pressure will return if the US reports strong 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 1.2100, however, the MACD line should be in the overbought area as only by that will the market reverse to 1.2061 and 1.2007.
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.