Analysis and trading tips for GBP/USD on on October 17
October 17, 2023 8:23 am
Analysis of transactions and tips for trading GBP/USD
Further growth became limited because the first test of 1.2176 coincided with the sharp rise of the MACD line from zero. As for its second test, it occurred when the MACD line went into the overbought area, providing a signal to sell. This resulted in a price decrease of over 20 pips.
The remarks of Bank of England member Huw Pill did not help pound rally, unlike the soft statements from Fed representatives, which led to an upward movement in the pair towards the end of the US session. However, the price remained within the sideways channel, so sellers have a good chance of returning the market to its lower boundary today. Waiting for data on the UK’s unemployment rate and speech by Bank of England member Swati Dhingra.
For long positions:
Buy when pound hits 1.2190 (green line on the chart) and take profit at the price of 1.2229 (thicker green line on the chart). Growth will occur after the breakdown of the upper boundary of the sideways channel. However, 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 1.2157, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2190 and 1.2229.
For short positions:
Sell when pound reaches 1.2157 (red line on the chart) and take profit at the price of 1.2113. Pressure will increase since the chances of a decline seem much higher than those of a breakout. However, 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 1.2190, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2157 and 1.2113.
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 growth became limited because the first test of 1.2176 coincided with the sharp rise of the MACD line from zero. As for its second test, it occurred when the MACD line went into the overbought area, providing a signal to sell. This resulted in a price decrease of over 20 pips.
The remarks of Bank of England member Huw Pill did not help pound rally, unlike the soft statements from Fed representatives, which led to an upward movement in the pair towards the end of the US session. However, the price remained within the sideways channel, so sellers have a good chance of returning the market to its lower boundary today. Waiting for data on the UK’s unemployment rate and speech by Bank of England member Swati Dhingra.
For long positions:
Buy when pound hits 1.2190 (green line on the chart) and take profit at the price of 1.2229 (thicker green line on the chart). Growth will occur after the breakdown of the upper boundary of the sideways channel. However, 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 1.2157, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2190 and 1.2229.
For short positions:
Sell when pound reaches 1.2157 (red line on the chart) and take profit at the price of 1.2113. Pressure will increase since the chances of a decline seem much higher than those of a breakout. However, 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 1.2190, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2157 and 1.2113.
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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