Relevance up to 03:00 2022-06-11 UTC–4
Analysis of transactions in the GBP / USD pair
GBP/USD reaching 1.2497 led to a buy signal in the market. Since the MACD line was in the oversold zone for a long time, the pair rose by 30 pips. It went to 1.2545, where another buy signal was formed. But since the MACD line was far from zero, the upside potential was limited. No other signal appeared for the rest of the day.
Having no statistics on the UK kept pound within the channel, but with a slight advantage to sellers, who are counting on strong data on US inflation today. Considering that there is also nothing interesting to be released this morning, nothing serious will happen during the European session. But in the afternoon, data on US CPI will drive the pair, that is, if inflation rises further, demand for dollar will surge. If it decreases, risky appetite will return. The University of Michigan’s report on consumer expectations and sentiment will no longer be of any interest after the May CPI figures.
For long positions:
Buy pound when the quote reaches 1.2504 (green line on the chart) and take profit at the price of 1.2552 (thicker green line on the chart). There is a chance for a rally today, but big movements will occur only in the afternoon. Nevertheless, 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 1.2473, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2504 and 1.2552.
For short positions:
Sell pound when the quote reaches 1.2473 (red line on the chart) and take profit at the price of 1.2437. Pressure will return if the US reports that inflation in the country rose higher. 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 1.2504, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2473 and 1.2437.
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.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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