Analysis and trading tips for GBP/USD on June 23 (US session)
June 23, 2023 1:22 pm
The test of 1.2707, coinciding with the recovery of the MACD line from the oversold area, prompted a buy signal that led to a price increase of about 15 pips.
Market players seems to be ignoring the weak PMI data for the UK as the services sector continued to show growth. But the upcoming speeches of FOMC members James Bullard and Raphael Bostic, which will undoubtedly discuss interest rates and inflation in the US, together with the report on PMI data in the US, could lead to a new wave of sell-offs, provided that the numbers in the service, manufacturing, and composite index indicate an increase. Weak data will bring demand back to pound. Expect the high market volatility to persist.
For long positions:
Buy when pound hits 1.2734 (green line on the chart) and take profit at the price of 1.2775 (thicker green line on the chart). Growth may continue in the event of weak data from the US. However, when buying, traders should make sure that the MACD line lies above zero or rises from it. Pound can also be bought after two consecutive price tests of 1.2713, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2734 and 1.2775.
For short positions:
Sell when pound reaches 1.2713 (red line on the chart) and take profit at the price of 1.2674. Pressure will increase in the case of strong statistics from the ISM. However, when selling, traders should 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 1.2734, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2713 and 1.2674.
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 1.2707, coinciding with the recovery of the MACD line from the oversold area, prompted a buy signal that led to a price increase of about 15 pips.
Market players seems to be ignoring the weak PMI data for the UK as the services sector continued to show growth. But the upcoming speeches of FOMC members James Bullard and Raphael Bostic, which will undoubtedly discuss interest rates and inflation in the US, together with the report on PMI data in the US, could lead to a new wave of sell-offs, provided that the numbers in the service, manufacturing, and composite index indicate an increase. Weak data will bring demand back to pound. Expect the high market volatility to persist.
For long positions:
Buy when pound hits 1.2734 (green line on the chart) and take profit at the price of 1.2775 (thicker green line on the chart). Growth may continue in the event of weak data from the US. However, when buying, traders should make sure that the MACD line lies above zero or rises from it. Pound can also be bought after two consecutive price tests of 1.2713, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2734 and 1.2775.
For short positions:
Sell when pound reaches 1.2713 (red line on the chart) and take profit at the price of 1.2674. Pressure will increase in the case of strong statistics from the ISM. However, when selling, traders should 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 1.2734, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2713 and 1.2674.
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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