01.06.202314:33 Forex Analysis & Reviews: Analysis and trading tips for GBP/USD on June 1 (US session)

The test of 1.2410, coinciding with the significant decline of the MACD line from zero, limited the downward potential of the pair. A similar story happened with the level of 1.2442.

Pound will rally if the ISM manufacturing index and the ADP employment data fall below expectations. FOMC member Patrick T. Harker, continuing to lean towards a pause in the interest rate hike cycle during the June meeting, will also put pressure on dollar, leading to a further rise in GBP/USD.

For long positions:

Buy when pound hits 1.2480 (green line on the chart) and take profit at the price of 1.2529 (thicker green line on the chart). Growth could occur amid weak statistics from the US. However, before buying, traders should make sure that the MACD line lies above zero or rises from it. Pound can also be bought after two consecutive price tests of 1.2455, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2480 and 1.2529.

For short positions:

Sell when pound reaches 1.2455 (red line on the chart) and take profit at the price of 1.2403. Pressure will only return in the case of very good statistics from the US. However, when selling, traders should make sure that the MACD line lies below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2480, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2455 and 1.2403.

What's on the chart:

Thin green line - entry price at which you can buy GBP/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell GBP/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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.