GBP/USD: simple trading tips for novice traders on April 27. Analysis of yesterday trades
April 27, 2023 12:22 pm
Analysis of positions and tips for trading GBP
A test of 1.2438 occurred at a time when the MACD indicator rose considerably from the zero level. In my opinion, it limited the upside movement of the pair. For this reason, I did not open long positions, especially after such a large drop the day before. However, it turned out to be a mistake. So, I saw no other signals to enter the market.
The CBI distributive trades survey helped the pound sterling to return to the upper border of the sideways channel yesterday and even broke through it. It happened after the release of IS economic reports. However, it failed to consolidate there. Given that the economic calendar for the UK is empty, traders are focused on US macro stats which are on tap in the afternoon.
GDP figures for the 1st quarter of 2023 will have a big impact on the GBP/USD pair. Therefore, I would advise you to wait for this report and make trading decisions only after its release. Investors are likely to ignore initial jobless claims and pending home sales reports.
Buy signal
Scenario No.1: today, we could buy the pound sterling if the price reaches 1.2484 plotted by the green line on the chart with the target at 1.2520 (thicker green line on the chart). I would recommend leaving the market at 1.2520 and then selling the pound sterling in the opposite direction, bearing in mind a 30-35-pip downward move from the market entry point. The pair is likely to rise only amid weak US data. Important! Before opening long positions, make sure that MACD is above the zero mark and it has just started to climb from it.
Scenario No.2: it is also possible to buy the pound sterling today if the price approaches 1.2462. At this moment the MACD indicator should be in the oversold area. It could limit the downward potential of the pair. It may also trigger an upward reversal of the market. The pair is expected to grow to the opposite levels of 1.2484 and 1.2520.
Sell signal
Scenario No.1: we could sell the pound sterling if the price hits 1.2462 plotted by the red line on the chart. If so, there might be a sharp decline. The 1.2436 level could serve as the target where I recommend leaving the market and buying the pound sterling in the opposite direction, bearing in mind a 20-25-pip upward move. The pressure on the pair could return only due to upbeat economic reports. Important! Before opening short positions, make sure that MACD is below the zero line and it has just started to decline from it.
Scenario No.2: it is also possible to sell the pound sterling today if the price decreases to 1.2484. At this moment, the MACD indicator should be in the overbought area, which will limit the upward potential of the pair. It could also lead to a downward reversal of the market. The pair is projected to slide down to the opposite levels of 1.2462 and 1.2436.
What’s on the chart
The thin green line is the key level where you can open long positions on the GBP/USD pair.
The thick green line is the target price as the price is unlikely to rise above this level.
The thin red line is the level where you can open short positions on the GBP/USD pair.
The thick red line is the target price as the price is unlikely to decline below this level.
MACD line. When entering the market, it is important to pay attention to the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is better to stay out of the market to avoid losses during sharp fluctuations in market quotes. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose your entire deposit very quickly, especially if you do not use money management and trade large volumes.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis of positions and tips for trading GBP
A test of 1.2438 occurred at a time when the MACD indicator rose considerably from the zero level. In my opinion, it limited the upside movement of the pair. For this reason, I did not open long positions, especially after such a large drop the day before. However, it turned out to be a mistake. So, I saw no other signals to enter the market.
The CBI distributive trades survey helped the pound sterling to return to the upper border of the sideways channel yesterday and even broke through it. It happened after the release of IS economic reports. However, it failed to consolidate there. Given that the economic calendar for the UK is empty, traders are focused on US macro stats which are on tap in the afternoon.
GDP figures for the 1st quarter of 2023 will have a big impact on the GBP/USD pair. Therefore, I would advise you to wait for this report and make trading decisions only after its release. Investors are likely to ignore initial jobless claims and pending home sales reports.
Buy signal
Scenario No.1: today, we could buy the pound sterling if the price reaches 1.2484 plotted by the green line on the chart with the target at 1.2520 (thicker green line on the chart). I would recommend leaving the market at 1.2520 and then selling the pound sterling in the opposite direction, bearing in mind a 30-35-pip downward move from the market entry point. The pair is likely to rise only amid weak US data. Important! Before opening long positions, make sure that MACD is above the zero mark and it has just started to climb from it.
Scenario No.2: it is also possible to buy the pound sterling today if the price approaches 1.2462. At this moment the MACD indicator should be in the oversold area. It could limit the downward potential of the pair. It may also trigger an upward reversal of the market. The pair is expected to grow to the opposite levels of 1.2484 and 1.2520.
Sell signal
Scenario No.1: we could sell the pound sterling if the price hits 1.2462 plotted by the red line on the chart. If so, there might be a sharp decline. The 1.2436 level could serve as the target where I recommend leaving the market and buying the pound sterling in the opposite direction, bearing in mind a 20-25-pip upward move. The pressure on the pair could return only due to upbeat economic reports. Important! Before opening short positions, make sure that MACD is below the zero line and it has just started to decline from it.
Scenario No.2: it is also possible to sell the pound sterling today if the price decreases to 1.2484. At this moment, the MACD indicator should be in the overbought area, which will limit the upward potential of the pair. It could also lead to a downward reversal of the market. The pair is projected to slide down to the opposite levels of 1.2462 and 1.2436.
What’s on the chart
The thin green line is the key level where you can open long positions on the GBP/USD pair.
The thick green line is the target price as the price is unlikely to rise above this level.
The thin red line is the level where you can open short positions on the GBP/USD pair.
The thick red line is the target price as the price is unlikely to decline below this level.
MACD line. When entering the market, it is important to pay attention to the overbought and oversold zones.
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is better to stay out of the market to avoid losses during sharp fluctuations in market quotes. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose your entire deposit very quickly, especially if you do not use money management and trade large volumes.
The material has been provided by InstaForex Company – www.instaforex.com
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