Analysis of transactions and tips for trading GBP/USD
Further growth became limited as the first test of 1.2930, which happened on Wednesday afternoon, coincided with the sharp rise of the MACD line from zero. The second test, on the other hand, coincided with the moment when the MACD was in the overbought area, providing an opportunity for selling. This played out as expected, resulting in a 25-pip decline in the pair.
The empty macroeconomic calendar in the UK will give buyers the chance to continue the upward trend. Market players may also react to the UK retail sales data, but the chance seems to be small-scale. More substantial growth may be seen if the upcoming US GDP data comes out weaker than expected.
For long positions:
Buy when pound hits 1.2971 (green line on the chart) and take profit at the price of 1.3032 (thicker green line on the chart). Growth may occur amid a strong retail sales report. However, when buying, ensure that the MACD line lies above zero or rises from it.
Pound can also be bought after two consecutive price tests of 1.2921, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2971 and 1.3032.
For short positions:
Sell when pound reaches 1.2921 (red line on the chart) and take profit at the price of 1.2875 Pressure will return in case of an unsuccessful attempt to break through the weekly high. However, when selling, ensure that the MACD line lies below zero or drops down from it.
Pound can also be sold after two consecutive price tests of 1.2971, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2921 and 1.2875.
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.