08.03.202212:01 Forex Analysis & Reviews: Analysis and trading tips for GBP/USD on March 8

Analysis of transactions in the GBP / USD pair

A signal to sell emerged after GBP/USD hit 1.3199. Coincidentally, the MACD line was below zero, so the pair decreased by more than 40 pips. It went to 1.3165, where buyers attempted to trigger a rebound, but failed. No other signal appeared for the rest of the day.

Although the report on UK house prices did not affect the market in any way, GBP/USD remained under pressure throughout the day. This is because the serious problems with inflation threaten to damage the UK economy, especially since the Bank of England is in no hurry to solve it, only gradually raising interest rates. In fact, energy prices are now near historical highs, and this will create even more problems in the future.

There are no statistics from the UK today, so traders will focus their attention on the conflict in Ukraine. Then, during the US session, the NFIB will publish data on business optimism, followed by a report on the foreign trade balance in the US. There is a low chance that these will affect the market, so traders are unlikely to focus on them.

For long positions:

Buy pound when the quote reaches 1.3130 (green line on the chart) and take profit at the price of 1.3196 (thicker green line on the chart). However, there is little chance for a rally today, except if bulls successfully push the pair above 1.3130. In any case, 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 1.3090, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3130 and 1.3196.

For short positions:

Sell pound when the quote reaches 1.3090 (red line on the chart) and take profit at the price of 1.3041. GBP/USD remains under pressure, but be very careful with sales at current lows. Also, 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 1.3130, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3090 and 1.3041.

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.