29.06.202211:29 Forex Analysis & Reviews: Analysis and trading tips for GBP/USD on June 29

Analysis of transactions in the GBP / USD pair

GBP/USD tested 1.2288 yesterday. At that time, the MACD line was far from zero, so the upside potential was limited. The pair then continued to move down even after testing 1.2252, falling to 1.2199, where buyers became active again. However, long positions only led to loses as there was no rebound in the market. No other signal appeared for the rest of the day.

Exchange Rates 29.06.2022 analysis

The lack of statistics did not help the pound yesterday, while the speech of MPC member John Cunliffe was ignored by the market. Most likely, the upcoming reports on consumer lending and retail prices in the UK will lead to a surge in volatility, but the overall trend will be bearish. And if the speech of Bank of England president Andrew Bailey becomes more hawkish, pressure on pound will continue. In the afternoon, Fed Chairman Jerome Powell and FOMC member James Bullard will also speak, followed by the release of US GDP data for the first quarter of 2022. If the report is revised for the better, demand for dollar will increase.

For long positions:

Buy pound when the quote reaches 1.2205 (green line on the chart) and take profit at the price of 1.2251 (thicker green line on the chart). There is little chance for a rally today, especially in the face of weak statistics from the UK. Nevertheless, remember that when buying, the MACD line should be above zero, or is starting to rise from it. It is also possible to buy at 1.2169, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2205 and 1.2251.

For short positions:

Sell pound when the quote reaches 1.2169 (red line on the chart) and take profit at the price of 1.2125. Pressure will return if there is no bullish activity in the market and if the UK releases weak economic statistics. However, when selling, make sure that the MACD line is below zero or is starting to move down from it. Pound can also be sold at 1.2205, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2169 and 1.2125.

Exchange Rates 29.06.2022 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 decision 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.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2022
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.

  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
  • Ferrari from InstaForex
    Top up your account with at least $1,000
    join the contest and win Ferrari
    F8 Tributo
  • Chancy Deposit
    Deposit your account with $3,000 and win $1,000
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
Can't speak right now?
Ask your question in the chat.