Analysis of transactions and tips for trading GBP/USD
Data on UK retail sales is due out today. It may support the pair, allowing good buy signals for the market. However, a further downward correction is possible, especially around the weekly lows. Weak statistics will help with it.
Ahead are key reports from the US, namely the change in the number of orders for durable goods and the balance of foreign trade. Good numbers will suppport dollar, which will return the market to seller's side. This clearly means that traders should be cautious when buying GBP/USD or other risky assets.
For long positions:
Buy pound when the level of 1.2438 (green line on the chart) is reached and take profit at the price of 1.2470 (thicker green line on the chart). Growth will be seen if there is a consolidation above 1.2438. However, before buying, make sure that the MACD line is above zero or is starting to rise from it. Pound can also be bought after two consecutive price tests of 1.2420, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2438 and 1.2470.
For short positions:
Sell pound when the level of 1.2420 (red line on the chart) is reached and take profit at the price of 1.2391. Pressure will return if there is no bullish activity this morning. However, make sure that before selling, the MACD line is below zero or is starting to move down from it. Pound can also be sold after two consecutive price tests of 1.2438, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2420 and 1.2391.
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.