Analysis of transactions in the GBP / USD pair
Market signals were practically futile last Friday because trading was mainly carried out around 1.3618. In addition, traders were not that active so there was no strong movement in GBP / USD. Once, there was a signal to buy that coincided when the MACD line was in the oversold area, but it did not lead to a large upward movement. The reason why volatility was low is because the released data turned out just as expected. But today, the market promises to be more active because in the morning there will be a report on business activity in both UK manufacturing and services sectors.
Weaker-than-expected figures will end with a decline in GBP / USD, while better numbers will result in a slight increase. Then, in the afternoon, similar data is expected, but this time it will be from the United States. There may be an upward correction in the pair, but on the condition that indicators post a slower growth than last month.
For long positions:
Open a long position when pound reaches 1.3663 (green line on the chart), and then take profit at the level of 1.3715 (thicker green line on the chart). GBP / USD will climb higher if UK publishes strong macro statistics. But before buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.3636 and 1.3603, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3663 and 1.3715.
For short positions:
Open a short position when pound reaches 1.3636 (red line on the chart), and then take profit at the level of 1.3603. A decline will occur if UK releases weak economic reports. But before selling, make sure that the MACD line is below zero, or is starting to move down from it. It is also possible to sell at 1.3663 and 1.3715, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3636 and 1.3603.
What’s on the chart:
The thin green line is the key level at which you can place long positions in the GBP/USD pair.
The thick green line is the target price, since the quote is unlikely to move above this level.
The thin red line is the level at which you can place short positions in the GBP/USD pair.
The thick red line is the target price, since the quote is unlikely to move below this level.
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 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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
If you have an interest in any area of Forex Trading, this is where you want to be.
Global Fx Trading Group is a world leader in providing Fx services to individual traders, including: Unmatched funding programs, on-line education, virtual trading rooms, automation tools, robot building, and personal coaching.
The company was first established by Jeff Wecker, former member of the Chicago Board of Trade, with 25 years in the industry. Jeff has a keen understanding of the needs of Forex traders and those needs are our focus.
Please join our VIP Group while is still FREE …
https://t.me/joinchat/JqsXFBKpyj3YS4bLWzT_rg
Our mission is simple: To enhance as many lives as we can through education and empowerment.
#theforexarmy #forexsigns #forexsignals #forexfamily #forexgroup #forexhelp #forexcourse #forextrade #forexdaily #forexmoney #forexentourage #forextrading #forex #forexhelptrading #forexscalping #babypips #forexfactory #forexlife #forextrader #financialfreedom
