30.09.202109:23 Forex Analysis & Reviews: Analysis and trading recommendations for GBP/USD on September 30

Analysis of transactions in the GBP / USD pair

Pound continued the collapse that began a few days ago due to the inability of UK authorities to quickly deal with the fuel crisis that erupted across the country over the weekend. Looking at the chart, there was a single test of 1.3536 that occurred during the time that the MACD line was moving down from zero. It formed a signal to sell in the market, which provoked a 50-pip decline to 1.3487. Obviously, reports on lending and aggregate of the M4 money supply did not help pound in any way, as did the speech of Bank of England chief Andrew Bailey. Expectations that the central bank will raise interest rates later this year also dissipated amid multiple problems in the country.

Today, data on UK GDP may shake the markets, provided that the figure exceeds expectations. Then, in the afternoon, there will be speeches from Fed representatives and US Treasury Secretary Janet Yellen, followed by reports on jobless claims. The data, however, is unlikely to harm dollar even amid poor performance.

For long positions:

Open a long position when pound reaches 1.3467 (green line on the chart) and take profit at the level of 1.3529 (thicker green line on the chart). However, there is little chance of a price increase, given the steep downward move yesterday. In any case, 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 1.3430, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3467 and 1.3529.

For short positions:

Open a short position when pound reaches 1.3430 (red line on the chart) and take profit at the level of 1.3384. Pressure is likely to continue ahead of the vote on the US national debt ceiling, which is scheduled for today in the Senate. But before selling, make sure that the MACD line is below zero, or is starting to move down from it.

The pair could also be sold at 1.3467, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3430 and 1.3384.

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.