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FX.co ★ Analysis and trading recommendations for GBP/USD on September 28

Analysis and trading recommendations for GBP/USD on September 28

Analysis of transactions in the GBP / USD pair

There were sell signals in GBP / USD yesterday, but it had to be ignored at first because the MACD line was far away from zero. By afternoon though the MACD line went to the overbought area, so traders were able to take short positions. The movement to only 15 pips, and then the market continued to grow. No other signals appeared for the rest of the day.

Today, the market may be calm as there are no important statistics scheduled for release in the UK. The only thing that can be paid attention to is the speech of Catherine Mann, an MPC member of the Bank of England. If her statements hint at potential rate hikes this year, demand for pound will increase. There will also be statements from Fed representatives in the afternoon, followed by a speech from US Treasury Secretary Janet Yellen. All this should lead to good market volatility.

Analysis and trading recommendations for GBP/USD on September 28

For long positions:

Open a long position when pound reaches 1.3718 (green line on the chart) and take profit at the level of 1.3769 (thicker green line on the chart). The pair will climb higher if Bank of England representatives take tough position on monetary policy. But 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 1.3682, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3718 and 1.3769.

For short positions:

Open a short position when pound reaches 1.3682 (red line on the chart) and take profit at the level of 1.3635. A decline will occur if Fed representatives say they will wind down bond purchases as early as possible. 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 1.3718, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3682 and 1.3635.

Analysis and trading recommendations for GBP/USD on September 28

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.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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