FX.co ★ Analysis and trading tips for GBP/USD on July 11 (US session)

The first test of 1.2886 occurred when the MACD did not reach the sell level. The second test, meanwhile, took place at the start of the MACD line's rise from zero, prompting a buy signal that led to a price increase of over 30 pips.

Strong data on UK household incomes indicated the persistence of high inflation and the need to continue fighting it. Demand for pound rose because of this, as the Bank of England will likely maintain its plan to further raise interest rates.

The NFIB's small business optimism indicator lies ahead, but it will be of little interest, as market players will focus more on the speech of FOMC member James Bullard, who will undoubtedly remind everyone of high core inflation. Such a statement will provoke another rise in dollar.

For long positions:

Buy when pound hits 1.2916 (green line on the chart) and take profit at the price of 1.2955 (thicker green line on the chart). Further growth will be seen. However, 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 1.2881, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2916 and 1.2955.

For short positions:

Sell when pound reaches 1.2881 (red line on the chart) and take profit at the price of 1.2841. Pressure will increase in the event of hawkish comments from Fed representatives.

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 1.2916, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2881 and 1.2841.

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.