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Analysis of transactions in the GBP / USD pair
Several market signals appeared in GBP / USD on Wednesday, but the first one had to be ignored because it came when the MACD line was far away from zero. Fortunately, after some time, the indicator moved to the overbought area, so traders were able to short pound by 30 pips. Following that was a signal to buy, which coincided with the MACD line being at the oversold area. This allowed traders to take long positions in the market.
Since there are no important macro statistics scheduled to be released today, the market should remain calm in the morning. But by afternoon the US will release data on 2nd quarter GDP, which may provoke increased demand for dollar. The speech of the Fed Chairman Jerome Powell at the Jackson Hole symposium will also be decisive to the GBP / USD pair.
For long positions:
Open a long position when pound reaches 1.3764 (green line on the chart), and then take profit at the level of 1.3820 (thicker green line on the chart). It is likely that the bullish trend observed this week will continue. But before buying, make sure that the MACD line is above zero, or is starting to rise from it.
It is also possible to buy at 1.3745 and 1.3698, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3764 and 1.3820.
For short positions:
Open a short position when pound reaches 1.3745 (red line on the chart), and then take profit at the level of 1.3698. A decline will occur if buyers become inactive in the market. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.
It is also possible to sell at 1.3764 and 1.3820, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3745 and 1.3698.
What's on the chart:
The thin green line is the key level at which you can place long positions in the GBP/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the GBP/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.
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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
