Analysis of transactions and tips for trading GBP/USD
Further growth became limited as the first test of 1.2825 on Tuesday afternoon coincided with the sharp drop of the MACD line from zero. The second test, on the other hand, coincided with the moment when the MACD was in the oversold area, providing an opportunity for buying. This played out as expected, resulting in a 30-pip increase in the pair.
The empty macroeconomic calendar in the UK will give buyers the chance to continue the upward trend, especially ahead of the Fed meeting, where an interest rate hike, albeit the last for this year, may be seen.
For long positions:
Buy when pound hits 1.2903 (green line on the chart) and take profit at the price of 1.2956 (thicker green line on the chart). Growth may occur amid a dovish position of the Federal Reserve. 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 1.2873, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2903 and 1.2956.
For short positions:
Sell when pound reaches 1.2873 (red line on the chart) and take profit at the price of 1.2832 Pressure will persist if the Fed promises to continue raising interest rates. However, when selling, ensure that the MACD line lies below zero or drops down from it.
Pound can also be sold after two consecutive price tests of 1.2903, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2873 and 1.2832.
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
Analysis of transactions and tips for trading GBP/USD
Further growth became limited as the first test of 1.2825 on Tuesday afternoon coincided with the sharp drop of the MACD line from zero. The second test, on the other hand, coincided with the moment when the MACD was in the oversold area, providing an opportunity for buying. This played out as expected, resulting in a 30-pip increase in the pair.
The empty macroeconomic calendar in the UK will give buyers the chance to continue the upward trend, especially ahead of the Fed meeting, where an interest rate hike, albeit the last for this year, may be seen.
For long positions:
Buy when pound hits 1.2903 (green line on the chart) and take profit at the price of 1.2956 (thicker green line on the chart). Growth may occur amid a dovish position of the Federal Reserve. 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 1.2873, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2903 and 1.2956.
For short positions:
Sell when pound reaches 1.2873 (red line on the chart) and take profit at the price of 1.2832 Pressure will persist if the Fed promises to continue raising interest rates. However, when selling, ensure that the MACD line lies below zero or drops down from it.
Pound can also be sold after two consecutive price tests of 1.2903, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2873 and 1.2832.
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
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