Navigating GBP/USD: Transaction Analysis and Trading Tips Amidst Economic Pressures
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Analysis of transactions and tips for trading GBP/USD
Further decline became limited because the test of 1.2289 coincided with the sharp downward move of the MACD line from zero. The report on the UK house price index did not make an impression on traders, and pressure on the pair returned after the speeches made by Fed representatives. But today, pound may have a chance to compensate for losses, after the speech of Bank of England Governor Andrew Bailey. He should be full of optimism, hinting at the imminent winding down of aggressive policies and interest rate cuts. Pound will continue to fall if this does not happen.
For long positions:
Buy when pound hits 1.2285 (green line on the chart) and take profit at the price of 1.2327 (thicker green line on the chart). Growth will occur after Andrew Bailey's statements or after protecting the support at 1.2260. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it. Pound can also be bought after two consecutive price tests of 1.2266, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2285 and 1.2327.
For short positions:
Sell when pound reaches 1.2266 (red line on the chart) and take profit at the price of 1.2229. Pressure will continue as soon as Bailey comments on the poor state of the UK economy and high inflation. However, when selling, ensure that the MACD line lies below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2285, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2266 and 1.2229.
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
