Relevance up to 08:00 2022-06-23 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.
Analysis of transactions in the GBP / USD pair
GBP/USD reaching 1.2274 prompted a buy signal in the market, which, coinciding with the MACD line moving above zero, led to a price increase of more than 30 pips. Shortly after, pressure returned, but it did not bring the pair to the nearest resistance level. No other signal appeared for the rest of the day.
Although the lack of statistics helped pound yesterday, it was quite difficult to maintain the price levels, as the statements of FOMC member Loretta Mester offset the pressure on the dollar, eventually bringing GBP/USD back into a horizontal channel.
But today there is a chance for a decline as UK inflation completely coincided with the forecasts. Also, ahead is the speeches of FOMC members Jerome Powell and Patrick Harker, which, if has an aggressive tone, will strengthen demand for dollar and decrease risk appetite.
For long positions:
Buy pound when the quote reaches 1.2247 (green line on the chart) and take profit at the price of 1.2311 (thicker green line on the chart). However, there is little chance for a rally today as there are no objective reasons for it. Nevertheless, remember that when buying, the MACD line should be above zero, or is starting to rise from it. It is also possible to buy at 1.2213, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2247 and 1.2311.
For short positions:
Sell pound when the quote reaches 1.2213 (red line on the chart) and take profit at the price of 1.2160. Pressure will return if the Fed takes an aggressive approach on monetary policy. 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 1.2247, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2213 and 1.2160.
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.
