Latest News

Analysis and trading tips for GBP/USD on March 7

Relevance up to 01:00 2022-03-08 UTC–5

Analysis of transactions in the GBP / USD pair

GBP/USD continues to fall because of the ongoing conflict in Ukraine. However, a more appropriate reason for the decline is the expectation of changes in US monetary policy, as well as the strong report on US employment, which increased demand for dollar. This is because the data pointed to the rapid growth of the US labor market, prompting the Fed to act more aggressively in the fight against inflation.

There are no statistics from the UK today, except the report on house prices, which does not have much weight for the forex market. This means that more aggressive actions of buyers at current lows could happen.

The US will also release a report on consumer lending, but it has little chance to affect the market. Meanwhile, the speech of Fed Chairman Jerome Powell could prompt another increase in USD.

For long positions:

Buy pound when the quote reaches 1.3235 (green line on the chart) and take profit at the price of 1.3274 (thicker green line on the chart). Strong economic reports in the Euro area may provoke a rise in GBP/USD. But 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 1.3199, however, the MACD line should be in the oversold area as only by that will the market reverse to 1.3235 and 1.3274.

For short positions:

Sell pound when the quote reaches 1.3199 (red line on the chart) and take profit at the price of 1.3165. GBP/USD remains under pressure, but be very careful with sales at current lows. Also, 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 1.3235, however, the MACD line should be in the overbought area, as only by that will the market reverse to 1.3199 and 1.3165.

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.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Benefit from analysts’ recommendations right now

Top up trading account

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.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published.

More in:Latest News