See also
The test of the 1.2441 level occurred when the MACD indicator had already moved significantly downward from the zero mark, which limited the pair's downward potential. For this reason, I did not sell the pound.
The pound declined as many traders fear that during today's press conference, Fed Chair Jerome Powell will present a new assessment of the economic situation and outline the central bank's future steps, which are expected to be restrictive and hawkish.
Investors are eagerly awaiting clear signals on whether the Fed will continue raising interest rates or shift toward rate cuts. Given market uncertainty, every word from Powell will be scrutinized.
If the Fed maintains a wait-and-see stance and pauses rate adjustments, this could support the U.S. dollar, as investors would interpret it as a sign of economic resilience. Consequently, a stronger dollar would likely pressure other currencies, including the pound, prompting investors to sell GBP/USD more aggressively.
However, if Powell hints at potential rate cuts, the reaction may be mixed. On one hand, it could boost demand for risk assets, but on the other, it might also raise concerns about a potential economic slowdown in the U.S.
For today's intraday trading, I will primarily focus on Scenario #1 and Scenario #2.
Important! Before entering a buy trade, ensure that the MACD indicator is above the zero mark and just starting to rise.
Important! Before entering a sell trade, ensure that the MACD indicator is below the zero mark and just starting to decline.
Important Notes for Beginner Forex Traders
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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