FX.co ★ Analysis and trading tips for GBP/USD on April 17 (US session)

Pound has no chance for further growth as the lack of bullish activity around the daily highs led to another sell-off in the market. In addition, the test of 1.2400 during the drop of the MACD line was a pretty good reason to sell. It resulted in a price decrease of about 25 points.

Ahead is the NY Empire State manufacturing index in the US, so it is unlikely that the movement will only be in one direction. But it is best to bet on a further decline, following the pattern of the pair this morning.

For long positions:

Buy pound when the quote reaches 1.2433 (green line on the chart) and take profit at the price of 1.2467 (thicker green line on the chart). Only the breakdown of the daily highs will provoke a rise in GBP/USD. However, before buying, make sure that the MACD line is above zero and is starting to rise from it. Pound can also be bought at 1.2400, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2433 and 1.2467.

For short positions:

Sell pound when the quote reaches 1.2400 (red line on the chart) and take profit at the price of 1.2362. There may be a correction in the afternoon as there is no reason to buy. 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 at 1.2433, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2400 and 1.2362.

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.