The Best Bet Is On A Further Correction Of The GBP/USD Pair Upwards
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Analysis of transactions and tips for trading GBP/USD
The test of 1.1930 occurred when the MACD line was just starting to move below zero, which was a pretty good signal to sell. However, the decline was only 15 pips, after which the pair returned above 1.1930. Sales around 1.2022 in the afternoon resulted in a price decrease of over 20 pips.
The UK retail sales report led to a slight drop in GBP/USD on Friday, bringing it to a new monthly low. However, sellers did not stay there for long.
Today, the only data that is coming out for the UK is the Rightmove housing price index report, so market players should not expect much volatility. This means that the best bet is on a further correction of the pair upwards. There are also no statistics scheduled to be released in the afternoon, so expect lower trading volume, which will lock the pair in a horizontal channel.
For long positions:
Buy pound when the quote reaches 1.2054 (green line on the chart) and take profit at the price of 1.2093 (thicker green line on the chart). Growth will be possible as there are no statistics scheduled to be released today. However, when buying, make sure that the MACD line is above zero or is starting to rise from it. Pound can be bought at 1.2027, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2054 and 1.2093.
For short positions:
Sell pound when the quote reaches 1.2027 (red line on the chart) and take profit at the price of 1.1966. Pressure will return if economic data in the UK are weaker than expected. However, when selling, make sure that the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.2054, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2027 and 1.1966.
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 decision based on the current market situation is an inherently losing strategy for an intraday trader
Relevance up to 07:00 2023-02-21 UTC+1 This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.
