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Analysis of transactions in the GBP / USD pair
When GBP/USD tested 1.2125, the MACD had just started to move below zero, which was a good signal to sell. Considering that the US also released strong employment statistics, it was not surprising that the quote fell by more than 90 pips. As for long positions from 1.2078, they were ignored given how strong the bear market was. No other signals appeared for the rest of the day.
Data on UK house prices and speech of MPC member Huw Pill led to a slight increase in GBP/USD, but reports from the US returned pressure to the market. The US unemployment rate reportedly dropped to 3.5%, while the number of new jobs increased by 568,000 in July. This raised the demand for dollar, leading to a fall in the pair.
There are no statistics scheduled to be released today, so trading will probably be calm the whole day. Expect volatility and trading volume to be low.
For long positions:
Buy pound when the quote reaches 1.2094 (green line on the chart) and take profit at the price of 1.2140 (thicker green line on the chart). There is a chance for a rally today, but only after the breakdown of 1.2094.
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 1.2065, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2094 and 1.2140.
For short positions:
Sell pound when the quote reaches 1.2065 (red line on the chart) and take profit at the price of 1.2018. Pressure will increase if the attempt to continue the upward correction fails.
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 1.2094, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2065 and 1.2018.
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.
