Relevance up to 08:00 2022-06-07 UTC+2 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.
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Analysis of transactions in the GBP / USD pair
GBP/USD reaching 1.2560 prompted a sell signal in the market, however, there was no sharp decrease even though the MACD line was starting to move below zero. The same thing happened with the buy signal at 1.2581, during which the MACD line was just starting to move up. The only successful signal was to buy at 1.2528, and that resulted in a 35-pip price increase.
Friday's report on the change in the number of employed in the US non-farm sector supported dollar, prompting a major sell-off in GBP/USD as it became clear that even the aggressive policy of the Fed does not have much effect on the state of the unemployment rate. But today, there are no statistics scheduled to be released in the UK and the US, which can help the pound rally, at least in the morning. Don't be surprised if the pair fluctuates throughout the day.
For long positions:
Buy pound when the quote reaches 1.2510 (green line on the chart) and take profit at the price of 1.2546 (thicker green line on the chart). There is a chance for a rally today as there are no important statistics scheduled to be released today. However, note that when buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.2487, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2510 and 1.2546.
For short positions:
Sell pound when the quote reaches 1.2487 (red line on the chart) and take profit at the price of 1.2459. Pressure may return, but this will happen only after a breakout of weekly lows. Nevertheless, 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 1.2510, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2487 and 1.2459.
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.
