08.02.202211:36 Forex Analysis & Reviews: Analysis and trading tips for GBP/USD on February 8

Analysis of transactions in the GBP / USD pair

A signal to buy emerged after GBP/USD hit 1.3539. However, the pair did not increase as the MACD line was quite far from zero. Some time after, the pound hit the level again, but this time the market signal was to sell. Coincidentally, the MACD line was in the overbought area, so the pair dipped by more than 45 pips.

Contrary to what was expected, reports about UK house prices and US consumer lending did not affect the market yesterday. But today there may be a slight decline in GBP/USD as data from the US may ease some pressure on the pair. Volatility is likely to surge after the release of reports on US small business optimism and foreign trade balance.

For long positions:

Buy pound when the quote reaches 1.3534 (green line on the chart) and take profit at the price of 1.3575 (thicker green line on the chart). The bullish trend will return if buyers manage to push GBP/USD above 1.3540. But 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 1.3511, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3534 and 1.3575.

For short positions:

Sell pound when the quote reaches 1.3511 (red line on the chart) and take profit at the price of 1.3471. Be careful and cautious when selling at lows because the lower pound falls, the more demand will return to it. 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 1.3534, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3511 and 1.3471.

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.