Analysis of transactions and trading tips on GBP/USD
Further decline became limited as the first test of 1.2713 coincided with the sharp drop of the MACD line from zero. The second test, on the other hand, prompted a buy signal, which led to a price increase of about 15 pips.
The released data on the UK led to sell-offs, but buyers took advantage of this situation to enter the market at good prices. The report from the Office for National Statistics said the volume of retail sales fell by 1.2% last month, following a 0.6% rise in June. Economists forecast a decline of 0.6% m/m.
As for today, the empty macroeconomic calendar will give pound a chance to increase further.
For long positions:
Buy when pound hits 1.2735 (green line on the chart) and take profit at the price of 1.2771 (thicker green line on the chart). Strong growth will not occur, but a small upward move may be possible.
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 1.2706, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2735 and 1.2771.
For short positions:
Sell when pound reaches 1.2706 (red line on the chart) and take profit at the price of 1.2674. Pressure may not increase significantly.
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 1.2735, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2706 and 1.2674.
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.