Analysis of transactions in the GBP / USD pair

A signal to sell emerged after GBP/USD hit 1.13400. Coincidentally, the MACD line was below zero, so the pair dropped by 35 pips. No other signal appeared for the rest of the day.

Data on US income and spending fully coincided with the forecasts, indicating that the economy is stable and has good growth prospects.

In the UK, there are no reports scheduled for release today, so it is likely that buyers will attempt to build an upward correction in GBP/USD. That, however, may not last long as the US will publish data on Chicago PMI in the afternoon. It will be followed by a speech from FOMC member Esther George, which could provoke higher dollar demand provided that it addresses the monetary policy.

For long positions:

Buy pound when the quote reaches 1.3434 (green line on the chart) and take profit at the price of 1.3471 (thicker green line on the chart). A rally is possible, but only in the morning. And 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 1.3407, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3434 and 1.3471.

For short positions:

Sell pound when the quote reaches 1.3407 (red line on the chart) and take profit at the price of 1.3365. Lack of bullish activity will lead to a decline in the pair. But 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 1.3434, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3407 and 1.3365.

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.