Analysis and trading tips for GBP/USD on May 25
May 25, 2023 7:22 amVideo
Latest News
- Will the BoJ disappoint once again? – Preview April 24, 2024
- Forex forecast 04/24/2024: EUR/USD, USD/CAD, Oil and Bitcoin from Sebastian Seliga April 24, 2024
- USD/JPY: trading tips for beginners for European session on April 24 April 24, 2024
- GBP/USD: trading tips for beginners for European session on April 24 April 24, 2024
- EUR/USD: trading tips for beginners for European session on April 24 April 24, 2024
- Market Comment – Stocks in the green, dollar stable as next batch of US data awaited April 24, 2024
- Technical Analysis – WTI futures tick up after bouncing off 50-SMA April 24, 2024
- Technical Analysis – GBPUSD bounces off 1.2300 but remains at risk April 24, 2024
- EUR/USD and GBP/USD: Technical analysis on April 24 April 24, 2024
- We’ve Shared Food and Ramadan Blessings in Pakistan April 24, 2024
- Key events on April 24: fundamental analysis for beginners April 24, 2024
- Trading plan for GBP/USD on April 24. Simple tips for beginners April 24, 2024
- Trading plan for EUR/USD on April 24. Simple tips for beginners April 24, 2024
- Technical Analysis of Intraday Price Movement of AUD/JPY Cross Currency Pairs, Wednesday April 24, 2024. April 24, 2024
- Technical Analysis of Intraday Price Movement of Silver Commodity Asset, Wednesday April 24, 2024. April 24, 2024
- Forecast for EUR/USD on April 24, 2024 April 24, 2024
- Forecast for GBP/USD on April 24, 2024 April 24, 2024
- Forecast for AUD/USD on April 24, 2024 April 24, 2024
- Outlook for GBP/USD on April 24. The pound has perked up April 24, 2024
- Outlook for EUR/USD on April 24. Euro rose to the upper boundary of the channel April 24, 2024
Analysis of transactions and tips for trading GBP/USD
The test of 1.2404 coincided with the time that the MACD line had risen significantly from zero, which limited the upward potential of the pair. Sometime later, there was another test, but this time it gave a sell signal, which resulted in a price decrease of over 50 pips.
Pound rose slightly as the decline in UK CPI was not as much as expected. However, pressure remained as Bank of England Governor Andrew Bailey noted progress in achieving the initial price pressure targets.
Today, the economic calendar is empty apart from the retail sales data from the Confederation of British Industry. There is not much reason for pound to grow in the morning.
For long positions:
Buy pound when the level of 1.2353 (green line on the chart) is reached and take profit at the price of 1.2381 (thicker green line on the chart). Growth could occur after very strong data on UK retail sales. However, when buying, traders should make sure that the MACD line is above zero or is starting to rise from it. Pound can also be bought after two consecutive price tests of 1.2332, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2353 and 1.2381.
For short positions:
Sell pound when the level of 1.2332 (red line on the chart) is reached and take profit at the price of 1.2299. Pressure will intensify if there is negative news on the US debt negotiations. However, when selling, traders should make sure that the MACD line is below zero or is starting to move down from it. Pound can also be sold after two consecutive price tests of 1.2353, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2332 and 1.2299.
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: