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Analysis of transactions in the GBP / USD pair
A signal to sell emerged after GBP/USD hit 1.3533. However, the pair did not decrease because the MACD line being far from zero limited the downside potential of the pair. Fortunately, the second attempt was successful because it led to a dip of more than 40 pips. No other signal appeared for the rest of the day.
A number of UK statistics will be published today, and those may prompt volatility to surge in the markets provided that the figures turn out better than expected. GBP/USD is likely to climb up if data on the labor market exceed expectations. But strong US data on manufacturing and producer prices could turn the market around during the US session.
For long positions:
Buy pound when the quote reaches 1.3539 (green line on the chart) and take profit at the price of 1.3579 (thicker green line on the chart). A rally will occur if data on the UK labor market exceed expectations. 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 1.3519, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3539 and 1.3579.
For short positions:
Sell pound when the quote reaches 1.3519 (red line on the chart) and take profit at the price of 1.3495. However, it is better to bet on an increase because the more often the pair approaches the lower border of the side channel, the more active trading will be. Statistics from the UK will also give bulls the necessary confidence for a rally. In any case, before selling, make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.3539, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3519 and 1.3495.
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.
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