Stay 
Trading Conditions
Products
Tools
Analysis of transactions and tips for trading EUR/USD
The test of 1.2327 happened when the MACD line was just starting to move below zero, which was a good signal to sell. However, there was no price decrease as volatility was low in the market. No other signals appeared for the rest of the day.
As expected, the RICS house price balance and lending conditions in the UK were unimpressive for traders, so pound did not move much on Thursday. But today, there are important reports that are due, such as the underlying retail sales index and UK retail sales volume. A decline in their figures will lead to a fall in GBP/USD as it will point to a slowdown in economic activity in the country. However, it will also allow inflation to fall down, which is good for the Bank of England's plans to get it back to 2.0%.
In the afternoon, there is the US secondary housing market sales report, which, if shows a good reading, will strengthen the dollar. Hawkish remarks from FOMC members Patrick Harker and Christopher Waller could also prompt a rise in USD.
For long positions:
Buy pound when the quote reaches 1.2382 (green line on the chart) and take profit at the price of 1.2440 (thicker green line on the chart). Growth could occur if the upcoming retail sales data exceeds expectations. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Pound can also be bought at 1.2327, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2382 and 1.2440.
For short positions:
Sell pound when the quote reaches 1.2327 (red line on the chart) and take profit at the price of 1.2267. Pressure will increase if there is no bullish activity at the new highs. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.2382, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2327 and 1.2267.
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.
