empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

08.11.202108:48 Forex Analysis & Reviews: Analysis and trading tips for GBP/USD on November 8

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Analysis of transactions in the GBP / USD pair

GBP / USD fell by 50 pips on Friday because many traders took short positions amid a signal to sell that coincided with the MACD line moving below zero. Then, in the afternoon, a 60-pip increase was seen, thanks to the signal to buy that coincided with the MACD line being at the oversold area. No other signals appeared for the rest of the day.

Exchange Rates 08.11.2021 analysis

Statements from Bank of England members Silvana Tenreyro and David Ramsden pushed GBP / USD down last Friday morning, but by afternoon the situation reversed as traders took advantage of US data to take profits, causing an upward correction in the pair.

Trading may lag today because there are no important reports expected in the morning. But by mid-day, there will be a speech from Bank of England governor Andrew Bailey, who last Thursday provoked a massive sell-off in pound. There will also be statements from Fed representatives Richard Clarida, John Williams and Charles Evans, followed by an interview with Fed Chairman Jerome Powell. If Powell mentions future actions on monetary policy, market volatility will surge.

For long positions:

Open a long position when pound reaches 1.3500 (green line on the chart) and take profit at 1.3552 (thicker green line on the chart). Growth will be observed if the Bank of England hints at potential changes in its monetary policy.

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 1.3467, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.3500 and 1.3552.

For short positions:

Sell pound when the quote reaches 1.3467 (red line on the chart) and take profit at the price of 1.3409. The decline will continue if the Bank of England insists on adhering to a soft monetary policy.

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 1.3500, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.3467 and 1.3409.

Exchange Rates 08.11.2021 analysis

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.

Jakub Novak
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off