Pound tested the level of 1.2420 when the MACD line was quite far from zero, so the downside potential was limited. But in the afternoon, there are much more interesting data and speeches from Fed representatives, which could be decisive to the market's direction. The report on US jobless claims may be of little interest, but the volume of home sales in the secondary market will return demand for dollar, provided that the figure exceeds expectations.
For long positions:
Buy pound when the quote reaches 1.2455 (green line on the chart) and take profit at the price of 1.2505 (thicker green line on the chart). Weak US statistics will push pound to spike upwards, However, before buying, make sure that the MACD line is above zero and is starting to rise from it. Pound can also be bought if the level of 1.2420 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2455 and 1.2505.
For short positions:
Sell pound when the quote reaches 1.2420 (red line on the chart) and take profit at the price of 1.2370. However, there is little chance that there will be a massive decline today. Nevertheless, when selling, make sure that the MACD line is below zero and is starting to drop down from it. Pound can also be sold if the level of 1.2455 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2420 and 1.2370.
What's on the chart:
Thin green line - entry price at which you can buy GBP/USD
Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line - entry price at which you can sell GBP/USD
Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
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.