Analysis of transactions and trading tips on GBP/USD
No price tests occurred in the morning, as after a sharp upward surge caused by good GDP data, market volatility decreased significantly.
Today, the direction of the pair will depend on price pressure in the US. If the July report shows a slowdown in price growth, demand for pound will likely return. But if inflation rises above forecasts, pressure will persist, as the uncertainty regarding the Fed's future policy will limit the upward potential. Consumer sentiment and inflation expectations may also influence the market, in which a sharp increase in the former and a decrease in the latter will lead to continued purchases of dollar, resulting in a decline in GBP/USD.
For long positions:
Buy when pound hits 1.2720 (green line on the chart) and take profit at the price of 1.2766 (thicker green line on the chart). Growth will occur in the event of a rapid drop in US inflation. 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 1.2692, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2720 and 1.2766.
For short positions:
Sell when pound reaches 1.2692 (red line on the chart) and take profit at the price of 1.2640. Pressure will return if price pressure in the US rises sharply. However, when selling, make sure that the MACD line lies below zero or drops down from it.
Pound can also be sold after two consecutive price tests of 1.2720, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2692 and 1.2640.
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.