23.11.202110:44 Forex Analysis & Reviews: Analysis and trading tips for GBP/USD on November 23

Analysis of transactions in the GBP / USD pair

There was a signal to sell in GBP / USD on Monday, but the decrease in the morning was only 10 pips even though the MACD line was moving below zero. By afternoon though the fall was as much as 50 pips.

Pressure may persist in pound if the PMI reports in UK turn out weaker than anticipated. A decrease in the figures will indicate a slowdown, which is a bad signal to buyers. Statements from Bank of England members Jonathan Haskel and Andrew Bailey could also push demand down as their positions on interest rates will most likely remain dovish. Also, in the afternoon, the US will release the same PMI reports, where data should be much higher. If this happens, demand for dollar will rise, which will result in the further decline of GBP / USD. The Richmond Fed manufacturing index will be decisive as well.

For long positions:

Buy pound when the quote reaches 1.3406 (green line on the chart) and take profit at the price of 1.3458 (thicker green line on the chart). An increase will be observed if the economic reports from UK exceed expectations.

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 1.3380, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3406 and 1.3458.

For short positions:

Sell pound when the quote reaches 1.3380 (red line on the chart) and take profit at the price of 1.3333. The decline will continue if there is no progress on the UK economy.

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 1.3406, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3380 and 1.3333.

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.