Relevance up to 08:00 2022-06-29 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 1.2288 prompted a buy signal in the market. Coincidentally, the MACD line just started to move above zero, so the pair rose by more than 40 pips. Some time later, the pair went to 1.2335, forming a sell signal. And this time, the MACD line was quite far from zero, so the downside potential was limited. Another test of 1.2288 also failed to make strong price movements.

There is nothing interesting in the UK today, so the pair will attempt to get out of the horizontal channel. The scheduled speech of MPC member John Cunliffe may just be the one that could make this possible.

In the afternoon, there is also nothing that would provide significant support to the dollar as the upcoming data on US foreign trade balance and consumer confidence will have little impact on the market. For this reason, it is more ideal to take long positions, counting on the resumption of the uptrend in GBP/USD, most likely towards new weekly highs after breaking through 1.2290.

For long positions:

Buy pound when the quote reaches 1.2288 (green line on the chart) and take profit at the price of 1.2335 (thicker green line on the chart). There is little chance for a rally today, but a breakdown of 1.2290 may change the situation. In any case, 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 1.2252, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2288 and 1.2335.

For short positions:

Sell pound when the quote reaches 1.2252 (red line on the chart) and take profit at the price of 1.2199. Pressure will return if there is no bullish activity at weekly highs this morning. 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 1.2288, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2252 and 1.2199.

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.

Read more: https://www.instaforex.eu/forex_analysis/314683