Analysis and trading tips for GBP/USD on on October 13
October 13, 2023 5:25 am
Analysis of transactions and tips for trading GBP/USD
The test of 1.2289, coinciding with the decline of the MACD line from zero, prompted a sell signal that led to a price decrease of over 60 pips.
The released GDP data for the UK did not particularly help pound continue its rally, while the data on US inflation led to a decline because the September figure exceeded expectations. Such statistics will likely compel the Fed for further actions. As for today, no compelling reasons to buy pound could be seen, especially amid the empty macroeconomic calendar. The speech of the Bank of England Governor Andrew Bailey may further sour the situation for buyers.
For long positions:
Buy when pound hits 1.2221 (green line on the chart) and take profit at the price of 1.2251 (thicker green line on the chart). Growth will occur in anticipation of the upward correction, but be cautious with long positions after yesterday’s data.
When buying, the MACD line should be above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2190, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2221 and 1.2251.
For short positions:
Sell when pound reaches 1.2190 (red line on the chart) and take profit at the price of 1.2149. Pressure will increase at any moment, in line with yesterday’s trend.
When selling, the MACD line should be below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2221, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2190 and 1.2149.
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
The test of 1.2289, coinciding with the decline of the MACD line from zero, prompted a sell signal that led to a price decrease of over 60 pips.
The released GDP data for the UK did not particularly help pound continue its rally, while the data on US inflation led to a decline because the September figure exceeded expectations. Such statistics will likely compel the Fed for further actions. As for today, no compelling reasons to buy pound could be seen, especially amid the empty macroeconomic calendar. The speech of the Bank of England Governor Andrew Bailey may further sour the situation for buyers.
For long positions:
Buy when pound hits 1.2221 (green line on the chart) and take profit at the price of 1.2251 (thicker green line on the chart). Growth will occur in anticipation of the upward correction, but be cautious with long positions after yesterday’s data.
When buying, the MACD line should be above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2190, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2221 and 1.2251.
For short positions:
Sell when pound reaches 1.2190 (red line on the chart) and take profit at the price of 1.2149. Pressure will increase at any moment, in line with yesterday’s trend.
When selling, the MACD line should be below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2221, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2190 and 1.2149.
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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