FX.co ★ Analysis and trading tips for GBP/USD on July 6 (US session)

The test of 1.2720, coinciding with the rise of the MACD line from zero, prompted a buy signal that led to a price increase of over 60 pips.

ADP's employment report lies ahead, in which an increase in the indicator will put further pressure on GDP/USD. If it shows poor data, dollar demand will plunge, leading to a rise in the pair. As for the report on jobless claims and trade balance in the US, they will not affect the market, while growth in the ISM's service sector business activity index will strengthen dollar, leading to a drop in pound.

For long positions:

Buy when pound hits 1.2779 (green line on the chart) and take profit at the price of 1.2838 (thicker green line on the chart). Further grow will be seen after a weak report from ADP.

When buying, make sure that the MACD line lies above zero or rises from it. Pound can also be bought after two consecutive price tests of 1.2730, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2779 and 1.2838.

For short positions:

Sell when pound reaches 1.2730 (red line on the chart) and take profit at the price of 1.2674. Pressure will increase significantly in the event of good reports from the US.

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 1.2779, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2730 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.