The test of 1.2353 coincided with the time when the MACD line had already risen upwards, opening the way for a price decline. However, the downward movement was not as large as expected, which forced most traders to close positions after a slight climb above 1.2353.

Pound halted its rally as the larger contraction in the yearly data of retail sales offset the surprising monthly increase. But this afternoon, volatility could increase due to the upcoming data on US core personal consumption expenditure. A decline in the index will lead to a further dip in pound, which could exacerbate amid rising income and expenditure levels of Americans, as well as a sharp increase in orders for durable goods. If the opposite scenario happens, or if the indicators turn out to be mediocre, bullish traders will flock the market.

For long positions:

Buy pound when the quote reaches 1.2385 (green line on the chart) and take profit at the price of 1.2422 (thicker green line on the chart). Growth is likely to occur amid positive news related to US government debt. However, before buying, make sure that the MACD line is above zero and is starting to rise from it. Pound can also be bought after the level of 1.2346 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2385 and 1.2422.

For short positions:

Sell pound when the quote reaches 1.2346 (red line on the chart) and take profit at the price of 1.2310. Pressure may continue without significant fundamental reasons. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it. Pound can also be sold after the level of 1.2385 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2346 and 1.2310.

What's on the chart:

Thin green line - entry price at which you can buy GBP/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell GBP/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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.