The economic calendar in the UK helped pound recover its losses against dollar. However, the test of 1.2478 occurred when the MACD line was already far from zero, so the upward potential was limited.
The Empire Manufacturing index is set to come out in the afternoon. However, more interesting is the speech of FOMC member Raphael Bostic as he may comment on the topic of interest rate hikes and problems due to the debt ceiling. That will certainly bring back pressure on pound and lead to another fall in GBP/USD.
For long positions:
Buy pound when the quote reaches 1.2508 (green line on the chart) and take profit at the price of 1.2544 (thicker green line on the chart). Growth will be seen amid dovish rhetoric from Fed representatives. However, before buying, make sure that the MACD line is above zero and is starting to rise from it. Pound can also be bought after the level of 1.2476 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2508 and 1.2544.
For short positions:
Sell pound when the quote reaches 1.2476 (red line on the chart) and take profit at the price of 1.2439. Pressure could return if there is negative news related to the US debt limit. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it. Pound can also be sold after the level of 1.2508 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2476 and 1.2439.
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.