Analysis and trading tips for GBP/USD on August 3 (US session)
August 3, 2023 1:24 pm
The test of 1.2692, coinciding with the decline of the MACD line from zero, prompted a sell signal that resulted in a price decrease of over 40 pips.
Although the Bank of England’s decision to raise interest rates limited the downward potential, no serious market changes occurred. However, the upcoming report on US jobless claims may affect pound negatively, especially if the numbers exceed expectations. Another point of interest will be the ISM’s report on business activity in the services sector, which could revise downwards, weakening dollar’s position and leading to a larger upward correction in GBP/USD.
For long positions:
Buy when pound hits 1.2681 (green line on the chart) and take profit at the price of 1.2743 (thicker green line on the chart). Growth will occur amid very weak statistics from the US. However, when buying, ensure that the MACD line lies above zero or rises from it.
Pound can also be bought after two consecutive price tests of 1.2635, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2681 and 1.2743.
For short positions:
Sell when pound reaches 1.2635 (red line on the chart) and take profit at the price of 1.2580. Pressure may return in the case of growth in the US labor market. However, when selling, make sure that the MACD line lies below zero or drops down from it.
Pound can also be sold after two consecutive price tests of 1.2681, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2635 and 1.2580.
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.
The material has been provided by InstaForex Company – www.instaforex.com
The test of 1.2692, coinciding with the decline of the MACD line from zero, prompted a sell signal that resulted in a price decrease of over 40 pips.
Although the Bank of England’s decision to raise interest rates limited the downward potential, no serious market changes occurred. However, the upcoming report on US jobless claims may affect pound negatively, especially if the numbers exceed expectations. Another point of interest will be the ISM’s report on business activity in the services sector, which could revise downwards, weakening dollar’s position and leading to a larger upward correction in GBP/USD.
For long positions:
Buy when pound hits 1.2681 (green line on the chart) and take profit at the price of 1.2743 (thicker green line on the chart). Growth will occur amid very weak statistics from the US. However, when buying, ensure that the MACD line lies above zero or rises from it.
Pound can also be bought after two consecutive price tests of 1.2635, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2681 and 1.2743.
For short positions:
Sell when pound reaches 1.2635 (red line on the chart) and take profit at the price of 1.2580. Pressure may return in the case of growth in the US labor market. However, when selling, make sure that the MACD line lies below zero or drops down from it.
Pound can also be sold after two consecutive price tests of 1.2681, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2635 and 1.2580.
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.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: