FX.co ★ Analysis and trading tips for GBP/USD on November 17 US session)

Analysis of transactions and trading tips on GBP/USD

The test of 1.2401, coinciding with the decline of the MACD line from zero, prompted a sell signal that led to a price decrease of around 25 pips.

Ahead lies important data from the US, and the key among them will be the reports on issued building permits and the number of new foundation layouts. Weak data will lead to a surge in pound, keeping trading within the channel. Meanwhile, strong reports will bring pressure back on the pair. There will also be a speech from FOMC member Austan Goolsbee, but his statements will not lead to strong market fluctuations.

For long positions:

Buy when pound hits 1.2444 (green line on the chart) and take profit at the price of 1.2478 (thicker green line on the chart). Growth will occur after weak data from the US and dovish statements from Fed representatives.

When buying, ensure that the MACD line lies above zero or rises from it. Pound can also be bought after two consecutive price tests of 1.2410, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2444 and 1.2478.

For short positions:

Sell when pound reaches 1.2410 (red line on the chart) and take profit at the price of 1.2369. Pressure will increase in the case of strong real estate market data from the US.

When selling, make sure that the MACD line lies below zero or drops down from it. Pound can also be sold after two consecutive price tests of 1.2444, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2410 and 1.2369.

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.