Analysis and trading tips for GBP/USD on November 7 (US session)
November 7, 2023 12:22 pm
Analysis of transactions and trading tips on GBP/USD
Further decline became limited because the test of 1.2303 coincided with the sharp downward movement of the MACD line from zero.
Pound continued to slide down, driven by statements from Fed representatives who believe that interest rates will continue to increase. Today, FOMC members, including Neel Kashkari, Michael Barr, Christopher Waller, and John Williams will speak, and they could alter the market dynamics in favor of pound buyers if their tone regarding interest rates and the future of the US economy turns softer. Otherwise, pound will continue to fall down.
For long positions:
Buy when pound hits 1.2320 (green line on the chart) and take profit at the price of 1.2371 (thicker green line on the chart). Growth will continue, following the new bullish trend. 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 1.2289, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2320 and 1.2371.
For short positions:
Sell when pound reaches 1.2289 (red line on the chart) and take profit at the price of 1.2247. Pressure may persist as buyers have yet to take advantage of the significantly cheaper pound. 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 1.2320, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2289 and 1.2247.
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 trading tips on GBP/USD
Further decline became limited because the test of 1.2303 coincided with the sharp downward movement of the MACD line from zero.
Pound continued to slide down, driven by statements from Fed representatives who believe that interest rates will continue to increase. Today, FOMC members, including Neel Kashkari, Michael Barr, Christopher Waller, and John Williams will speak, and they could alter the market dynamics in favor of pound buyers if their tone regarding interest rates and the future of the US economy turns softer. Otherwise, pound will continue to fall down.
For long positions:
Buy when pound hits 1.2320 (green line on the chart) and take profit at the price of 1.2371 (thicker green line on the chart). Growth will continue, following the new bullish trend. 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 1.2289, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2320 and 1.2371.
For short positions:
Sell when pound reaches 1.2289 (red line on the chart) and take profit at the price of 1.2247. Pressure may persist as buyers have yet to take advantage of the significantly cheaper pound. 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 1.2320, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2289 and 1.2247.
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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