Analysis and trading tips for GBP/USD on May 29 (US session)
May 29, 2023 11:22 am
The test of 1.2350, coinciding with the downward movement of the MACD line from zero, gave off a sell signal in the market. However, low trading volume hampered the price decline to just about 13 pips. The economic calendar is empty in the afternoon so expect the pair to trade within the channel. News about the deal on the US debt ceiling also did not have any impact on the market.
For long positions:
Buy pound when the quote reaches 1.2362 (green line on the chart) and take profit at the price of 1.2396 (thicker green line on the chart). Growth could occur amid positive news. However, before buying, make sure that the MACD line is above zero and is starting to rise from it. Pound can also be bought after the level of 1.2337 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2362 and 1.2396.
For short positions:
Sell pound when the quote reaches 1.2337 (red line on the chart) and take profit at the price of 1.2310. Pressure may continue, which will push the pair towards monthly lows. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it. Pound can also be sold after the level of 1.2362 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2337 and 1.2310.
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 1.2350, coinciding with the downward movement of the MACD line from zero, gave off a sell signal in the market. However, low trading volume hampered the price decline to just about 13 pips. The economic calendar is empty in the afternoon so expect the pair to trade within the channel. News about the deal on the US debt ceiling also did not have any impact on the market.
For long positions:
Buy pound when the quote reaches 1.2362 (green line on the chart) and take profit at the price of 1.2396 (thicker green line on the chart). Growth could occur amid positive news. However, before buying, make sure that the MACD line is above zero and is starting to rise from it. Pound can also be bought after the level of 1.2337 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2362 and 1.2396.
For short positions:
Sell pound when the quote reaches 1.2337 (red line on the chart) and take profit at the price of 1.2310. Pressure may continue, which will push the pair towards monthly lows. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it. Pound can also be sold after the level of 1.2362 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2337 and 1.2310.
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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