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FX.co ★ Analysis and trading tips for GBP/USD on November 24

Analysis and trading tips for GBP/USD on November 24

Analysis of transactions in the GBP / USD pair

A signal to sell appeared in GBP / USD on Tuesday and it coincided with the time when the MACD line was moving below zero. This allowed traders to safely take short positions, which provoked a 40-pip decline in the pair. There were no other signals for the rest of the day.

Analysis and trading tips for GBP/USD on November 24

Pound declined yesterday amid weaker-than-anticipated manufacturing and service PMI reports in the UK. The statements of Bank of England members Jonathan Haskel and Andrew Bailey could not push demand up as well because traders were waiting for bolder decisions to raise interest rates during the policy meeting in December.

Today, trading may lag because there are no scheduled statistics from the UK. A report on industrial orders will be released, but it is unlikely to have a significant effect on the market. In the afternoon, US will release a report on Q3 GDP, which could raise dollar demand if the figure is revised for the better. Data on jobless claims, income and expenses will also be published, followed by the minutes of the recent Fed meeting. If the protocol does not indicate aggressive intentions of the committee members, demand for dollar will decline.

For long positions:

Buy pound when the quote reaches 1.3386 (green line on the chart) and take profit at the price of 1.3419 (thicker green line on the chart). An increase will be observed if the US releases weak data on the economy.

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 1.3364, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3386 and 1.3419.

For short positions:

Sell pound when the quote reaches 1.3364 (red line on the chart) and take profit at the price of 1.3335. A decline will occur in the event of a failed attempt to rise above 1.3386 and strong data on US GDP.

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.

See also: Start Forex trading with a European level broker!
Analysis and trading tips for GBP/USD on November 24

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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