27.04.202210:24 Forex Analysis & Reviews: Analysis and trading tips for GBP/USD on April 27

Analysis of transactions in the GBP / USD pair A signal to sell emerged after GBP/USD hit 1.2726. However, the MACD line was quite far from zero, so the downside potential was limited. In the afternoon, the pair reached 1.2681, prompting a signal to buy. There was an increase, but only by 15 pips. No other signal appeared for the rest of the day.

The report on UK's public sector net debt did not affect the market because the pound is already declining amid difficulties in the UK economy. At the same time, strong data on US consumer confidence and volume of home sales in the primary market increased demand for the dollar, thereby fueling the fall in GBP/USD.

Data on UK retail sales will be published today, and this could prompt an increase in pound provided that the figure exceeds expectations. However, it is unlikely to lead to the end of the bear market, just an attempt to find the bottom. In the afternoon, the US will release reports on the foreign trade balance, wholesale inventories and pending home sales, but all those will have little effect on the market. It is best to bet on the further decline of the pair.

For long positions:

Buy pound when the quote reaches 1.2615 (green line on the chart) and take profit at the price of 1.2665 (thicker green line on the chart). However, there is little chance for a rally today because the trend is currently bearish. There may be an increase, but it will just be a small upward correction. US data in the afternoon will also not add optimism to traders. In any case, when buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.2571, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2615 and 1.2665.

For short positions:

Sell pound when the quote reaches 1.2571 (red line on the chart) and take profit at the price of 1.2529. Pressure is likely to return on the market, especially if the upcoming UK statistics are disappointing. However, 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 1.2615, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2571 and 1.2529.

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.