Analysis of transactions in the GBP / USD pair

The test of 1.1204 happened when the MACD line was far below zero, which limited the downside potential of the pair. Only after the US data and a test of 1.1242 did the MACD line confirmed the correct entry point for pound, which resulted in a move of over 80 pips. Selling on a rebound from 1.1326 led to a decrease of about 30 pips.

The US unemployment rate rose sharply, which weakened dollar against a number of risky assets. The weak data will definitely affect the future plans of the Fed, so now many expect less active action from the bank at the end of this year.

Bank of England member Huw Pill will speak today, which could lead to a further rise in GBP/USD. There is also no important data coming from the US, and the speeches of FOMC members Loretta Mester and Susan Collins are likely to be of little interest.

For long positions:

Buy pound when the quote reaches 1.1340 (green line on the chart) and take profit at the price of 1.1395 (thicker green line on the chart). Growth may occur in accordance with the newly formed trend. But remember that when buying, the MACD line should be above zero or is starting to rise from it.

Pound can also be bought at 1.1286, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.1340 and 1.1395.

For short positions:

Sell pound when the quote reaches 1.1286 (red line on the chart) and take profit at the price of 1.1229. Pressure will return after hawkish statements from Fed representatives. But take note that when selling, the MACD line should be below zero or is starting to move down from it.

Pound can also be sold at 1.1340, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1286 and 1.1229.

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.