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FX.co ★ Analysis and trading tips for GBP/USD on August 23 (US session)

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Forex Analysis:::2023-08-23T10:56:44

Analysis and trading tips for GBP/USD on August 23 (US session)

Analysis of transactions and trading tips on GBP/USD

The test of 1.2755 in the morning coincided with the rise of the MACD line from zero, prompting a signal to buy. However, it led to losses, as pressure returned in the pair.

Pound also tested 1.2737 before the release of the UK's PMI indices. It coincided with the drop of the MACD line from zero, confirming the signal to sell. This resulted in a price decrease of more than 100 pips.

Analysis and trading tips for GBP/USD on August 23 (US session)

Sellers gained the upper hand this morning because of the weak PMI indices in the UK, which indicated the gloomy outlook of the economy. In the afternoon, similar reports will come from the US, where an increase in the indices will lead to another significant drop in GBP/USD. Dollar demand will maintain if data on new home sales falls short of expectations.

For long positions:

Buy when pound hits 1.2668 (green line on the chart) and take profit at the price of 1.2727 (thicker green line on the chart). Growth may not really occur today. Nevertheless, 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 1.2625, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2668 and 1.2727.

For short positions:

Sell when pound reaches 1.2625 (red line on the chart) and take profit at the price of 1.2574. Pressure may return in the afternoon after strong US PMI data. However, 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 1.2668, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2625 and 1.2574.

Analysis and trading tips for GBP/USD on August 23 (US session)

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.

Analyst InstaForex
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