Analysis and trading tips for GBP/USD on on October 16
October 16, 2023 8:23 am
Analysis of transactions and tips for trading GBP/USD
The test of 1.2188, coinciding with the rise of the MACD line from zero, prompted a signal to buy. However, a strong price increase did not occur, resulting in losses. As for the test of 1.2156, it took place when the MACD line lay in the oversold area, preventing short positions.
The remarks of Bank of England Governor Andrew Bailey, together with the increase in inflation expectations in the US, led to another round of sell-offs of GBP/USD. As for today, apart from the speech of Bank of England MPC member Huw Pill, nothing important will occur, so there may not be any strong rise in pound.
For long positions:
Buy when pound hits 1.2176 (green line on the chart) and take profit at the price of 1.2213 (thicker green line on the chart). Although growth will occur as part of an upward correction, be cautious with long positions.
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 1.2155, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2176 and 1.2213.
For short positions:
Sell when pound reaches 1.2155 (red line on the chart) and take profit at the price of 1.2125. Pressure will increase at any moment, continuing the bearish 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 1.2176, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2155 and 1.2125.
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 1.2188, coinciding with the rise of the MACD line from zero, prompted a signal to buy. However, a strong price increase did not occur, resulting in losses. As for the test of 1.2156, it took place when the MACD line lay in the oversold area, preventing short positions.
The remarks of Bank of England Governor Andrew Bailey, together with the increase in inflation expectations in the US, led to another round of sell-offs of GBP/USD. As for today, apart from the speech of Bank of England MPC member Huw Pill, nothing important will occur, so there may not be any strong rise in pound.
For long positions:
Buy when pound hits 1.2176 (green line on the chart) and take profit at the price of 1.2213 (thicker green line on the chart). Although growth will occur as part of an upward correction, be cautious with long positions.
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 1.2155, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2176 and 1.2213.
For short positions:
Sell when pound reaches 1.2155 (red line on the chart) and take profit at the price of 1.2125. Pressure will increase at any moment, continuing the bearish 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 1.2176, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2155 and 1.2125.
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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