Analysis of transactions and tips for trading GBP/USD

The test of 1.2584 took place at a time when the MACD line moved upward from zero. This provoked a buy signal, which led to a price increase of over 30 pips.

The empty macroeconomic calendar limited pound's growth in the morning, but weak PMI data for the US services sector posed real problems for dollar, leading to the strengthening of GBP/USD. Today, pound may face challenges if the figures for business activity in the UK services sector and the composite PMI indicate a slowdown in growth similar to what happened with the US indices. Otherwise, there will be a further strengthening of the pair.

For long positions:

Buy when pound hits 1.2665 (green line on the chart) and take profit at the price of 1.2697 (thicker green line on the chart). Growth could occur in continuation of the upward trend.

When buying, ensure that the MACD line lies above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2642, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2665 and 1.2697.

For short positions:

Sell when pound reaches 1.2642 (red line on the chart) and take profit at the price of 1.2617. Pressure will return in the case of an unsuccessful attempt to break through the daily high and weak PMI data.

When selling, ensure that the MACD line lies below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2665, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2642 and 1.2617.

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.