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Analysis of transactions in the GBP / USD pair
GBP/USD tested 1.2045. At that time, the MACD line had just started to move below zero, which is a good signal to sell. However, the quote did not decrease but had a breakeven. There were several more level tests after that, just before the release of the Fed decision, but all did not coincide with the necessary parameters on the MACD line.
The report on retail prices in the UK did not affect pound because markets were focusing more on the decision of the Federal Reserve on interest rates. Since Fed Chairman Jerome Powell did not say anything new, buying pressure remained.
There are no statistics scheduled to be released in the UK today, except for the report on housing prices. It is of little interest, so markets will most likely ignore it. In the afternoon, the US will publish data on Q2 GDP, as well as the number of jobless claims. Stronger numbers will offset dollar's losses yesterday, while disappointing data will push GBP/USD up.
For long positions:
Buy pound when the quote reaches 1.2186 (green line on the chart) and take profit at the price of 1.2243 (thicker green line on the chart). There is a chance for a rally today, but only if the pair stays above 1.2145.
Take note that when buying, the MACD line should be above zero or is starting to rise from it. It is also possible to buy at 1.2145, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2186 and 1.2243.
For short positions:
Sell pound when the quote reaches 1.2145 (red line on the chart) and take profit at the price of 1.2089. Pressure will return if the US reports stronger than expected economic data.
Take note that when selling, the MACD line should be below zero or is starting to move down from it. Pound can also be sold at 1.2186, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2145 and 1.2089.
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 decision 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.
