Relevance up to 06:00 2022-01-15 UTC+00
Analysis of transactions in the GBP / USD pair
GBP/USD reached 1.3718 at a time when the MACD line was moving above zero. That prompted a signal to buy in the market, which resulted in a 30-pip increase in the pair. No other signals appeared for the rest of the day.
Latest data from the US disappointed markets, but did not lead to a sharp fall in dollar. Even so, the sharp slowdown in producer prices and jump in jobless claims halted the potential dip in GBP/USD.
Most likely, the pair will rally today as good data on UK GDP and industrial production are expected. Activity in the services sector may also push the pair to new highs, but by afternoon, volatility will surge amid good reports on US industrial output and retail sales. Consumer sentiment from the University of Michigan may also force the pair to decline, provided that the figure exceeds expectations. Statements from FOMC member John Williams will end the day.
For long positions:
Buy pound when the quote reaches 1.3747 (green line on the chart) and take profit at the price of 1.3794 (thicker green line on the chart). But before doing so, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.3720, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3747 and 1.3794.
For short positions:
Sell pound when the quote reaches 1.3720 (red line on the chart) and take profit at the price of 1.3672. Pressure will return if reports on the UK economy are weaker than expected and if data from the US exceed expectations
Before selling, make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.3747, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3720 and 1.3672.
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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