29.10.202109:32 Forex Analysis & Reviews: Analysis and trading recommendations for GBP/USD on October 29

Pound grew further in the afternoon because demand for dollar decreased amid weak US Q3 GDP. Most likely, this bullish momentum will continue because UK lending data and mortgage applications, which are due out today, are unlikely to have significant impact on the market. At the same time, in the afternoon, reports on US income and expenditures will be published, followed by data on consumer sentiment. Weak figures will put even more pressure on dollar, which will accordingly lead to further increase in GBP/USD.

For long positions:

Open a long position when pound reaches 1.3803 (green line on the chart) and take profit at 1.3855 (thicker green line on the chart). The pair may hit record prices if the US releases weak macroeconomic statistics.

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 1.3777, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3803 and 1.3855.

For short positions:

Open a short position when pound reaches 1.3777 (red line on the chart) and take profit at 1.3734. Weak UK data and lack of bullish activity around 1.3734 will put pressure on the pair.

Before selling, make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.3803, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3777 and 1.3734.