The GBP/USD Pair May Trade Horizontally Today
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Analysis of transactions and tips for trading GBP/USD
The test of 1.2360 occurred when the MACD line was just starting to move below zero, which was a pretty good signal to sell. However, the pair did not fall, resulting in losses. No other signals appeared for the rest of the day.
Friday's data from the US coincided with forecasts, so GBP/USD traded horizontally. Most likely, this momentum will continue today because there are no UK statistics scheduled to be released in the morning. However, demand may return before the Bank of England meeting as market players are expecting interest rates to be raised again quite aggressively. There are also no statistics scheduled to be released in the afternoon, so a decrease in volatility could trigger a reversal in the market.
For long positions:
Buy pound when the quote reaches 1.2405 (green line on the chart) and take profit at the price of 1.2455 (thicker green line on the chart). Growth could occur as there are no statistics scheduled to be released today. However, make sure that when buying, the MACD line is above zero or is starting to rise from it. Pound can be bought at 1.2374, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2405 and 1.2455.
For short positions:
Sell pound when the quote reaches 1.2374 (red line on the chart) and take profit at the price of 1.2330. Pressure will increase if the attempt to update last Friday's high fails. However, make sure that when selling, the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.2405, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2374 and 1.2330.
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 2023-01-31 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
