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07.12.2023 01:32 PM
Analysis and trading tips for GBP/USD on December 7 (US session)

Analysis of transactions and trading tips on GBP/USD

Further growth became limited because the test of 1.2573 coincided with the sharp upward move of the MACD line from zero. Sometime later, another test occurred, but the MACD line just started to rise from zero, provoking a buy signal. This resulted in a price increase of around 15 pips.

Weak data on US jobless claims and wholesale trade inventories will undoubtedly help push pound higher. However, the market may remain in favor of sellers who can take advantage of the correction in the pair.

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For long positions:

Buy when pound hits 1.2605 (green line on the chart) and take profit at the price of 1.2642 (thicker green line on the chart). Growth will occur after another set of poor data on the US labor market.

When buying, ensure that the MACD line lies above zero or rises from it. Pound can also be bought after two consecutive price tests of 1.2570, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2605 and 1.2642.

For short positions:

Sell when pound reaches 1.2570 (red line on the chart) and take profit at the price of 1.2531. Pressure will increase in the case of strong US data.

When selling, make sure that the MACD line lies below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2605, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2570 and 1.2531.

This image is no longer relevant

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.

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