You are here: Home > articles > Forex > Analysis and trading tips for GBP/USD on October 19 (US session)
Analysis and trading tips for GBP/USD on October 19 (US session)
October 19, 2023 12:24 pmVideo
Latest News
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
- Hot forecast for EUR//USD on April 26, 2024 April 26, 2024
- Technical Analysis – GBPJPY close to a new 9-year high April 26, 2024
- Technical Analysis – USDCAD retreats beneath 20-day SMA April 26, 2024
- Key events on April 26: fundamental analysis for beginners April 26, 2024
- Trading plan for GBP/USD on April 26. Simple tips for beginners April 26, 2024
- Trading plan for EUR/USD on April 26. Simple tips for beginners April 26, 2024
- Technical Analysis of Intraday Price Movement of Polkadot Cryptocurrency, Friday April 26 2024. April 26, 2024
- Technical Analysis of Intraday Price Movement of Cardano Cryptocurrency, Friday April 26 2024. April 26, 2024
- Forecast for EUR/USD on April 26, 2024 April 26, 2024
- Forecast for GBP/USD on April 26, 2024 April 26, 2024
- Forecast for AUD/USD on April 26, 2024 April 26, 2024
- The ECB also has reasons to worry April 26, 2024
- The dollar: there would have been no happiness, but misfortune helped April 26, 2024
- Trading Signals for EUR/USD for April 25-27, 2024: buy above 1.0684 (21 SMA – 3/8 Murray) April 25, 2024
- Trading Signals for GOLD (XAU/USD) for April 25-27, 2024: buy above $2,324 (21 SMA – 5/8 Murray) April 25, 2024
Analysis of transactions and trading tips on GBP/USD
Further growth became limited because the test of 1.2140 coincided with the strong upward movement of the MACD line from zero. The empty macroeconomic calendar in the UK also allowed sellers to maintain control over the market, resulting in another update of weekly lows.
Ahead lies the latest labor market data from the US, which may only increase the pressure on the pair. A decrease in the number of initial jobless claims will lead to a fall in pound. However, the statements of Fed Chairman Jerome Powell may change everything. After all, for some reason, committee members have decided to take a softer stance, even though not too long ago they unanimously considered further interest rate hikes.
For long positions:
Buy when pound hits 1.2142 (green line on the chart) and take profit at the price of 1.2180 (thicker green line on the chart). Growth will occur after very weak labor market data from the US. 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 1.2103, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2142 and 1.2180.
For short positions:
Sell when pound reaches 1.2103 (red line on the chart) and take profit at the price of 1.2058. Pressure will increase in the event of strong statistics in the US and firm comments from Fed representatives regarding future monetary policy. 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 1.2142, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2103 and 1.2058.
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: