Analysis and trading tips for GBP/USD on September 19
September 19, 2023 7:22 am
Analysis of transactions and tips for trading GBP/USD
Further decline became limited because the first test of 1.2380 coincided with the sharp drop of the MACD line away from zero. The second test, on the other hand, happened when the MACD line exited the oversold area, prompting a signal to buy. This resulted in a price increase of over 25 pips.
The empty macroeconomic calendar in the UK today may ease pressure in GBP/USD a bit. However, the upcoming inflation data may exceed expectations, impacting the Bank of England’s decision on interest rates. Such would be unfavorable for pound, so be prepared if pressure persists.
For long positions:
Buy when pound hits 1.2390 (green line on the chart) and take profit at the price of 1.2435 (thicker green line on the chart). Growth will occur after a breakdown of the daily highs. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.
Pound can also be bought after two consecutive price tests of 1.2368, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2390 and 1.2435.
For short positions:
Sell when pound reaches 1.2368 (red line on the chart) and take profit at the price of 1.2329. Pressure may increase at any moment. 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 1.2390, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2368 and 1.2329.
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 tips for trading GBP/USD
Further decline became limited because the first test of 1.2380 coincided with the sharp drop of the MACD line away from zero. The second test, on the other hand, happened when the MACD line exited the oversold area, prompting a signal to buy. This resulted in a price increase of over 25 pips.
The empty macroeconomic calendar in the UK today may ease pressure in GBP/USD a bit. However, the upcoming inflation data may exceed expectations, impacting the Bank of England’s decision on interest rates. Such would be unfavorable for pound, so be prepared if pressure persists.
For long positions:
Buy when pound hits 1.2390 (green line on the chart) and take profit at the price of 1.2435 (thicker green line on the chart). Growth will occur after a breakdown of the daily highs. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.
Pound can also be bought after two consecutive price tests of 1.2368, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2390 and 1.2435.
For short positions:
Sell when pound reaches 1.2368 (red line on the chart) and take profit at the price of 1.2329. Pressure may increase at any moment. 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 1.2390, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2368 and 1.2329.
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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