FX.co ★ Analysis and trading tips for GBP/USD on November 6

Analysis of transactions and tips for trading GBP/USD

Further growth became limited because the test of 1.2221 coincided with the sharp upward move of the MACD line from zero. Meanwhile, PMI data for the UK released last Friday did not have much impact on the pair.

Upcoming PMI data for the UK's construction sector, as well as the speech of MPC member Huw Pill, will also play a less significant role in the market's direction. This may convince traders not to sell pound today, which will continue the upward trend.

For long positions:

Buy when pound hits 1.2396 (green line on the chart) and take profit at the price of 1.2435 (thicker green line on the chart). Growth will occur in continuation of the upward trend. However, when buying, ensure that the MACD line lies above zero or just starts to rise from it.

Pound can also be bought after two consecutive price tests of 1.2374, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2396 and 1.2435.

For short positions:

Sell when pound reaches 1.2374 (red line on the chart) and take profit at the price of 1.2336. Pressure may not return today. However, when selling, ensure that the MACD line lies below zero or drops down from it.

Pound can also be sold after two consecutive price tests of 1.2396, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2374 and 1.2336.

What's on the chart:

Thin green line - entry price at which you can buy GBP/USD

Thick green line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

Thin red line - entry price at which you can sell GBP/USD

Thick red line - estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

MACD line- it is important to be guided by overbought and oversold areas when entering the market

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.