Analysis and trading tips for GBP/USD on October 26 (US session)
October 26, 2023 1:33 pm
Analysis of transactions and trading tips on GBP/USD
Further growth became limited because the test of 1.2088 coincided with the strong upward movement of the MACD line from zero.
During the US session, GDP data for the 3rd quarter will come out, along with the reports on jobless claims and orders for durable goods. FOMC member Christopher Waller will also speak, although economic data will be much more important. Strong growth rate figures will likely lead to the further depreciation of the pair. But if the numbers disappoint, pressure on pound will ease, especially considering its oversold condition.
For long positions:
Buy when pound hits 1.2095 (green line on the chart) and take profit at the price of 1.2144 (thicker green line on the chart). Growth will occur after weak US statistics, indicating a less active economic recovery. 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 1.2070, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2095 and 1.2144.
For short positions:
Sell when pound reaches 1.2070 (red line on the chart) and take profit at the price of 1.2034. Pressure will increase in the case of strong US statistics. 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 1.2095, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2070 and 1.2034.
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 growth became limited because the test of 1.2088 coincided with the strong upward movement of the MACD line from zero.
During the US session, GDP data for the 3rd quarter will come out, along with the reports on jobless claims and orders for durable goods. FOMC member Christopher Waller will also speak, although economic data will be much more important. Strong growth rate figures will likely lead to the further depreciation of the pair. But if the numbers disappoint, pressure on pound will ease, especially considering its oversold condition.
For long positions:
Buy when pound hits 1.2095 (green line on the chart) and take profit at the price of 1.2144 (thicker green line on the chart). Growth will occur after weak US statistics, indicating a less active economic recovery. 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 1.2070, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2095 and 1.2144.
For short positions:
Sell when pound reaches 1.2070 (red line on the chart) and take profit at the price of 1.2034. Pressure will increase in the case of strong US statistics. 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 1.2095, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2070 and 1.2034.
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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