GBP/USD: sell or buy? Proposal to bargain

GBP/USD Trading Analysis The British pound tested 1.1669 when the MACD line started to drop below zero, which is a good sell signal. As a result, the quote fell 0 pips, updating the yearly low. As for the long levels around 1.1628, they did not yield much as the pair traded lower in the afternoon. Other than that, no other signals appeared for the rest of the day. Pound is constantly updating its yearly low, so not many people want to buy it. Even weak US nonfarm payrolls data didn’t give them a big boost yesterday afternoon. A report on business activity in the UK manufacturing sector was released today, but it is unlikely to cause a strong shake-up. The only thing that can temporarily stop the bear market is a strong oversold condition for all indicators. In the afternoon, the focus will be on US jobless claims data, ISM manufacturing index and FOMC member Raphael Bostic’s speech. For long positions: Buy sterling when quote reaches 1.1622 (green line on the chart) and take profit at 1.1683 (thicker green line on the chart) ). While there is little chance for a rally today, an upside correction is still possible. Note that when buying, the MACD line must be above zero or start rising from there. It is also possible to buy at 1.1572, but the MACD line should be in the oversold zone because then the market will reverse at 1.1622 and 1.1683. For short positions: Sell sterling when the quote reaches 1.1572 (red line on the chart) and take profit at 1.1525. The pressure could return at any time, especially after weak statistics in the UK. Note that when selling, the MACD line must be below zero or start going down from there. The pound could also be sold at 1.1622, but the MACD should be in the overbought zone, as only then will the market reverse at 1.1572 and 1.1525. What’s on the chart: The thin green line is the main level where you can place long positions in the GBP/USD pair. The thick green line is the target price, as the quote is unlikely to exceed this level. The thin red line is the level where you can place short positions in the GBP/USD pair. The red thick line is the target price, as the price is unlikely to drop below this level. MACD line – when entering the market, it is important to be guided by the overbought and oversold zones. Important: Beginner traders should be very careful when making market entry decisions. Before the release of important reports, it is better to stay out of the market to avoid getting caught up in sharp exchange rate fluctuations. If you decide to trade when the news is out, always place a stop order to minimize losses. Without placing a stop order, you can very quickly lose your entire deposit, especially if you don’t use money management and volume trading. And remember that to trade successfully, you must have a clear trading plan. An spontaneous trading decision based on the current market situation is an inherent loss strategy for a day trader. Relevance 09:00 2022-09-02 UTC 2 The Company does not provide investment advice and the analysis performed does not guarantee results. The market analysis published here is intended to raise your awareness, but does not provide guidance for making a trade.

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