GBP/USD: simple tips for beginning traders on June 8. Analysis of yesterday’s trades
June 8, 2023 10:24 am
Market recommendations:
The price tested 1.2474 in the second half of the day when the MACD was significantly above the zero mark. This, in my opinion, limited the upward potential of the pair, considering that it had already moved a considerable distance from the opening level of the day. For this reason, I did not buy the pound. There were no other signals.
Yesterday’s data, which unveiled a decline in the UK housing price index from Halifax did not significantly harm the British pound. However, buyers were unable to reach the weekly highs in the second half of the day. Today, there is no statistical data from the UK, which could support the pound. Therefore, in the first half of the day, I will bet on the implementation of scenario №1 for buying. If the pound falls, I will consider entering the market at 1.2430. However, it is better to take into account scenario №2.
Signals to buy GBP:
Scenario №1: You can buy the pound sterling today when the price touches 1.2459 (green line on the chart). A target will be located at 1.2495 (thicker green line on the chart). I recommend closing buy orders around 1.2495 and opening sell ones, anticipating a drop of 30-35 pips. It is possible to expect further growth in the pound sterling following yesterday’s trend. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario №2: You can also buy the British pound today in case of two consecutive tests of 1.2430 when the MACD indicator is in the oversold area. This will limit the downward potential of the pair and lead to an upward reversal. Expect a rise towards the opposite levels of 1.2459 and 1.2495.
Signals to sell GBP:
Scenario №1: You can sell the pound sterling only after the price retests 1.2430 (red line on the chart). This will lead to a rapid decline in the pair. The key target for sellers will be the level of 1.2395, where I recommend closing sell orders and immediately opening buy ones in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pound will return after an unsuccessful breakout of 1.2459. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.
Scenario №2: You can also sell the pound in case of two consecutive tests of 1.2459 when the MACD indicator is in the overbought area. This will limit the upward potential of the pair and lead to a downward reversal. Expect a decline towards the opposite level of 1.2430 and 1.2395.
What we see on the trading chart:
A thin green line is a key level at which you can place long positions on EUR/USD.
A thick green line is the target price since the quote is unlikely to move above it.
A thin red line is a level at which you can place short positions on EUR/USD.
A thick red line is the target price since the quote is unlikely to move below it.
A MACD line – when entering the market, it is important to be guided by the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions to enter the market. Before the release of important reports, it is better to stay out of the market to avoid sharp fluctuations in the price. If you decide to trade during the news release, place stop orders to minimize losses. Without stop orders, you can lose the entire deposit, especially if you do not use money management and trade large volumes.
Notably, for successful trading, it is necessary to have a clear trading plan. Rash trading decisions 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
Market recommendations:
The price tested 1.2474 in the second half of the day when the MACD was significantly above the zero mark. This, in my opinion, limited the upward potential of the pair, considering that it had already moved a considerable distance from the opening level of the day. For this reason, I did not buy the pound. There were no other signals.
Yesterday’s data, which unveiled a decline in the UK housing price index from Halifax did not significantly harm the British pound. However, buyers were unable to reach the weekly highs in the second half of the day. Today, there is no statistical data from the UK, which could support the pound. Therefore, in the first half of the day, I will bet on the implementation of scenario №1 for buying. If the pound falls, I will consider entering the market at 1.2430. However, it is better to take into account scenario №2.
Signals to buy GBP:
Scenario №1: You can buy the pound sterling today when the price touches 1.2459 (green line on the chart). A target will be located at 1.2495 (thicker green line on the chart). I recommend closing buy orders around 1.2495 and opening sell ones, anticipating a drop of 30-35 pips. It is possible to expect further growth in the pound sterling following yesterday’s trend. Important! Before buying, make sure that the MACD indicator is above the zero mark and is just starting to rise from it.
Scenario №2: You can also buy the British pound today in case of two consecutive tests of 1.2430 when the MACD indicator is in the oversold area. This will limit the downward potential of the pair and lead to an upward reversal. Expect a rise towards the opposite levels of 1.2459 and 1.2495.
Signals to sell GBP:
Scenario №1: You can sell the pound sterling only after the price retests 1.2430 (red line on the chart). This will lead to a rapid decline in the pair. The key target for sellers will be the level of 1.2395, where I recommend closing sell orders and immediately opening buy ones in the opposite direction (expecting a movement of 20-25 pips in the opposite direction from the level). Pressure on the pound will return after an unsuccessful breakout of 1.2459. Important! Before selling, make sure that the MACD indicator is below the zero mark and is just starting to decline from it.
Scenario №2: You can also sell the pound in case of two consecutive tests of 1.2459 when the MACD indicator is in the overbought area. This will limit the upward potential of the pair and lead to a downward reversal. Expect a decline towards the opposite level of 1.2430 and 1.2395.
What we see on the trading chart:
A thin green line is a key level at which you can place long positions on EUR/USD.
A thick green line is the target price since the quote is unlikely to move above it.
A thin red line is a level at which you can place short positions on EUR/USD.
A thick red line is the target price since the quote is unlikely to move below it.
A MACD line – when entering the market, it is important to be guided by the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions to enter the market. Before the release of important reports, it is better to stay out of the market to avoid sharp fluctuations in the price. If you decide to trade during the news release, place stop orders to minimize losses. Without stop orders, you can lose the entire deposit, especially if you do not use money management and trade large volumes.
Notably, for successful trading, it is necessary to have a clear trading plan. Rash trading decisions 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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