FX.co ★ Analysis and trading tips for GBP/USD on June 23

Analysis of transactions and tips for trading GBP/USD

The test of 1.0980, coinciding with the significant decline of the MACD line from zero, limited the downward potential of the pair. Shortly after, another test occurred, and this became a reason to buy pound. However, no significant upward movement occurred in the pair.

All focus will be on the UK Manufacturing PMI as its weak performance continues to drag down the composite PMI. If the data on Service PMI disappoint as well, pressure on pound will intensify.

For long positions:

Buy when pound hits 1.2755 (green line on the chart) and take profit at the price of 1.2829 (thicker green line on the chart). Growth could continue after very good PMI data in UK. However, when buying, traders should make sure that the MACD line lies above zero or rises from it. Pound can also be bought after two consecutive price tests of 1.2707, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2755 and 1.2829.

For short positions:

Sell when pound reaches 1.2707 (red line on the chart) and take profit at the price of 1.2649. Pressure will return in the event of weak statistics in the UK. However, when selling, traders should 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 1.2755, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2707 and 1.2649.

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.