Analysis of transactions and tips for trading GBP/USD
Further decline became limited because the first test of 1.2135, which occurred on Wednesday afternoon, coincided with the sharp drop of the MACD line from zero. Meanwhile, the second test prompted a buy signal, resulting in a price increase of around 20 pips. Selling at the price of 1.2135 during the middle of the US session, when the MACD started moving down from zero, led to a 20-pip decline.
The empty macroeconomic calendar today will keep the chances of GBP/USD rising slim. However, the pair already show signs of being oversold, so there may be an upward spike soon. The focus can be on the upcoming US data.
For long positions:
Buy when pound hits 1.2148 (green line on the chart) and take profit at the price of 1.2173 (thicker green line on the chart). Growth may occur, but it will only be within a correction.
When buying, ensure that the MACD line lies above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2127, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2148 and 1.2173.
For short positions:
Sell when pound reaches 1.2127 (red line on the chart) and take profit at the price of 1.2102. Pressure may increase at any moment, especially after the breakdown of another monthly low.
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 1.2148, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2127 and 1.2102.
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.