FX.co ★ Analysis and trading tips for GBP/USD on September 30

Analysis of transactions in the GBP / USD pair

The price test of 1.0818 occurred at the moment when the MACD line was just starting to move above zero, which was a good signal to buy. This led to an increase of over 60 pips and a test of 1.0907. But selling after a rebound from that level were not successful, leading to losses. No other signals appeared for the rest of the day.

Pound will fall under pressure if UK GDP for the second quarter is revised downward. There will also be reports on the balance of payments, as well as the overall change in investment volume. If the data does not surprise investors, demand for pound will surge today. The Nationwide House Price Index won't be of much interest. In the afternoon, US report on personal consumption expenditures may strengthen the dollar's position, provided that the data exceed expectations. Household spending will affect economic growth, while income will not play such a significant role. The day will end with speeches from Fed members Michelle Bowman and John Williams.

For long positions:

Buy pound when the quote reaches 1.1131 (green line on the chart) and take profit at the price of 1.1235 (thicker green line on the chart). However, growth is unlikely, especially considering the levels to which the pair has already recovered. In any case, traders could buy as long as the MACD line is above zero or is starting to rise from it.

Pound can also be bought at 1.1074, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1131 and 1.1235.

For short positions:

Sell pound when the quote reaches 1.1074 (red line on the chart) and take profit at the price of 1.0967. Pressure will return in case of weak statistics and a decrease in risk appetite due to geopolitical tensions. But take note that when selling, the MACD line should be below zero or is starting to move down from it.

Pound can also be sold at 1.1131, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.1074 and 1.0967.

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 decision based on the current market situation is an inherently losing strategy for an intraday trader.