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Analysis of transactions in the GBP / USD pair
A signal to sell emerged after GBP/USD hit 1.3203. Coincidentally, the MACD line was located below zero, so the pair fell by more than 40 pips. Sadly, it did not reach the target level of 1.3157. No other signal appeared for the rest of the day.
GBP/USD fell on Friday because demand decreased amid a dip in the volume of retail sales in the UK. At the same time, the statements made by Fed representatives increased appetite for dollar.
Bank of England governor Andrew Bailey will deliver a speech today, and it is likely that it will contain hints on the future of monetary policy, which will lead to a serious surge in volatility, putting even more pressure on the pair. But in the afternoon there may be a rally because US data on the foreign trade balance and wholesale stocks could weaken demand for the dollar, provided that the figures were lower than expected.
For long positions:
Buy pound when the quote reaches 1.3151 (green line on the chart) and take profit at the price of 1.3194 (thicker green line on the chart). However, it is a bit difficult to provoke a rally today because ahead is the speech of the Bank of England, which would seriously affect the mood of markets. 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 1.3126, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3151 and 1.3194.
For short positions:
Sell pound when the quote reaches 1.3126 (red line on the chart) and take profit at the price of 1.3092. Pressure is likely to continue as the outlook for the UK is getting gloomier every day. But 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 1.3151, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3126 and 1.3092.
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.
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.
