10.03.202211:06 Forex Analysis & Reviews: Analysis and trading tips for GBP/USD on March 10

Analysis of transactions in the GBP / USD pair

A signal to buy emerged after GBP/USD hit 1.3142. However, there was no increase as the MACD line being far from zero limited the upside potential of the pair. No other signal appeared for the rest of the day.

Everyone is focused on the upcoming US inflation data, but much also depends on the actions of the Bank of England to combat the high consumer price index, which is now destroying the UK economy. The fact that energy prices are close to their historical highs will create even more problems for the central bank in the future.

A report on UK house prices will be released today, but it will not affect the markets as it is not that important. In the afternoon, the US will publish its latest data on inflation, and that could return demand to dollar provided that the figure is higher than expected. The report on US jobless claims could also influence the direction of EUR/USD.

For long positions:

Buy pound when the quote reaches 1.3195 (green line on the chart) and take profit at the price of 1.3253 (thicker green line on the chart). However, there is little chance for a rally today, except if bulls successfully push the pair above 1.3195. 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 1.3152, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3195 and 1.3253.

For short positions:

Sell pound when the quote reaches 1.3152 (red line on the chart) and take profit at the price of 1.3089. Pressure could return at any moment, but a lot depends on the latest US inflation data. 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 1.3195, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3152 and 1.3089.

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.