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Overview and trading tips on GBP/USD
Due to low volatility and trading volume, tests of the levels I predicted in the first half of the day did not take place. In the second half of the day, buyers of risky assets, including the pound sterling, may even enter the market on a few conditions. This requires weak statistics from the US, in particular, the PCE price index, changes in personal spending, and changes in personal income. The dovish rhetoric of FOMC member Mary Daly and Fed Chairman Jerome Powell will also appeal to GBP/USD buyers. As for the intraday strategy, I will rely more on scenarios No 1 and No 2.
Buy signals
Scenario No. 1. I plan to buy the pound today when it reaches the entry point around 1.2630 plotted by the green line on the chart, reckoning growth to the level of 1.2675, plotted by the thicker green line on the chart. In the area of 1.2675, I will exit long positions and open short ones in the opposite direction, expecting a movement of 30-35 pips in the opposite direction from that level. One can count on the pound's growth today on the condition of poor statistics for the United States. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario No. 2: I also plan to buy the pound sterling today in case of two consecutive tests of the level of 1.2609, at a time when the MACD indicator is in the oversold area. This will limit the downward potential of GBP/USD and lead to an upward reversal of the instrument. We can expect growth to the opposite levels of 1.2630 and 1.2675.
Sell signals
Scenario No. 1. I plan to sell the pound today after the level of 1.2609 (red line on the chart) is updated. This will lead to a rapid decline in the price. The key target for sellers will be the level of 1.2569, where I will quit short positions and also immediately open long positions in the opposite direction, bearing in mind a movement of 20-25 pips in the opposite direction from the level. Sellers will only enter the market in light of strong US data. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting to fall from it.
Scenario No. 2. I also plan to sell the pound sterling today in case of two consecutive tests of the price of 1.2630, at a time when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward reversal of the market. We can expect a decline to the opposite levels of 1.2609 and 1.2569.
What's on the chart:
The thin green line is the entry price at which you can buy the trading instrument.
The thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
The thin red line is the entry price at which you can sell the trading instrument.
The thick red line is the 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 in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.
Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a 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.
