empty
 
 

Forex Analysis & Reviews: Forecast and trading signals for GBP/USD on December 9, 2022. COT report. Detailed analysis of price movement and trades
time 09.12.2022 07:36 AM
time Relevance up to, 10.12.2022 07:36 AM

M5 chart of GBP/USD

This image is no longer relevant

On Thursday, GBP/USD traded higher but failed to break through the critical line. Therefore, a downtrend may resume with the target at the Senkou Span B. The pair's volatility has decreased this week. Its movements have been chaotic, which made it quite difficult to trade, with signals being either weak or false. Traders have started to ignore the lines of the Ichimoku indicator, which may indicate an impending flat. On Thursday, there was not a single report or event, able to influence the market.

A lot of trading signals were generated yesterday but they were mostly false. In the M5 time frame, the first three signals were made near the extreme level of 1.2185. The first two signals turned out to be false. Consequently, there was no point in opening a position after the third signal. Further, several signals were produced near the critical line. Still, they were also partially false. All in all, yesterday's trading brought insignificant losses.

COT report:

This image is no longer relevant

The latest COT report showed an increase in bearish sentiment for the second straight week. During the reporting week, non-commercial traders closed 5,000 long positions and 4,000 short ones. The net position dropped by 1,000. The figure has been on the rise for several months. Nevertheless, sentiment remains bearish, and the pound is on the rise against the greenback for no reason. We assume that the pair may well resume the downtrend soon. Notably, both GBP/USD and EUR/USD now show practically identical movement. At the same time, the net position on EUR/USD is positive and negative on GBP/USD. Non-commercial traders now hold 62,000 sell positions and 28,500 long ones. The gap between them is quite wide. As for the total number of open longs and shorts, the bulls have an advantage here by 13,000. Technical factors indicate that the pound may move in an uptrend in the long term. At the same time, fundamental and geopolitical factors signal that the currency is unlikely to strengthen significantly.

H1 chart of GBP/USD

This image is no longer relevant

In the H1 time frame, GBP/USD keeps trading noticeably higher. It remains to be seen whether the pair settles above the critical line. If it does, the uptrend may resume. Otherwise, the price may fall to the Senkou Span B. This week, the pair may also be flat, as the H4 time frame shows. On Friday, trading levels are seen at 1.1760, 1.1874, 1.1974-1.2007, 1.2106, 1.2185, 1.2259, 1.2342, 1.2429-1.2458 as well as 1.2041 (Senkou Span B) and 1.222 (Kijun-sen). Signals are made whenever the price bounces or breaks through these levels and lines. Don't forget to place a stop-loss order at the breakeven point when the price passes 20 pips in the right direction. Ichimoku indicator lines can move during the day, which should be taken into account when determining trading signals. There are also support and resistance that can be used for profit-taking. On Monday, the macroeconomic calendar contains no important releases in the UK. The US will see the release of the Michigan consumer sentiment index, which will be published by the end of the day when it is already time to think about closing trades and leaving the market.

Indicators on charts:

Resistance/support - thick red lines, near which the trend may stop. They do not make trading signals.

The Kijun-sen and Senkou Span B lines are the Ichimoku indicator lines moved to the hourly timeframe from the 4-hour timeframe. They are also strong lines.

Extreme levels are thin red lines, from which the price used to bounce earlier. They can produce trading signals.

Yellow lines are trend lines, trend channels, and any other technical patterns.

Indicator 1 on the COT chart is the size of the net position of each trader category.

Indicator 2 on the COT chart is the size of the net position for the Non-commercial group of traders.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2023
GBPUSD
Great Britain Pound vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

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.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • 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.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

How to trade GBP/USD on February 8. Simple trading tips and analysis for beginners

GBP/USD continues to slowly edge down on Tuesday. The pound started to fall on Thursday, on Monday and Tuesday it slowed down due to the lack of fundamental and macroeconomic

Paolo Greco 22:46 2023-02-07 UTC+2

How to trade EUR/USD on February 8. Simple trading tips and analysis for beginners

EUR/USD continued to decline on Tuesday. I already warned you the momentum movement will continue for a few more days. This is what we saw on Monday and Tuesday. There

Paolo Greco 22:46 2023-02-07 UTC+2

USD/CAD upside reversal signaled

The USD/CAD pair failed to extend its downside movement, and by the moment of writing it passed above the downtrend line, signaling that the downside movement ended. Technically, the rate

Ralph Shedler 20:13 2023-02-07 UTC+2

EUR/USD outlook for February 7, 2023

Federal Reserve Chairman Jerome Powell's speech today at the Economic Club of Washington (17:40 GMT) can "swing" the dollar (and therefore the main dollar currency pairs) both up and down

Jurij Tolin 14:31 2023-02-07 UTC+2

U.S. Dollar Index outlook for February 7, 2023

The dollar index (DXY) is retreating from the 4-week highs reached yesterday and early in today's European trading session near 103.67: as of writing, DXY futures were trading near 103.41

Jurij Tolin 14:13 2023-02-07 UTC+2

GBP/USD: trading plan for North American session on February 7. Overview of morning trades. Pound drops slightly before BoE decision

In my previous forecast, I drew your attention to the level of 1.2012 and recommended entering the market from there. Let's have a look at the 5-minute chart and analyze

Miroslaw Bawulski 14:12 2023-02-07 UTC+2

EUR/USD: trading plan for American session on February 7. Overview of morning trades. Speculators to increase long positions at 1.0700

In my morning article, I turned your attention to 1.0720 and recommended making decisions with this level in focus. Now, let's look at the 5-minute chart and figure out what

Miroslaw Bawulski 12:15 2023-02-07 UTC+2

EUR/USD and GBP/USD trading plan for beginners on February 7, 2023

The EURUSD currency pair not only managed to maintain its inertia despite the technical signal that the euro was oversold, it managed to stay below the value of 1.0750

Gven Podolsky 10:42 2023-02-07 UTC+2

Trading plan for EUR/USD and GBP/USD on February 7

Although the retail sales data for the Euro area was revised upwards, the number itself is still noticeably worse than the forecast. The rate of decline was expected to slow

Mark Bom 08:43 2023-02-07 UTC+2

How to trade GBP/USD on February 7. Simple trading tips and analysis for beginners

GBP/USD tried to continue the downward movement on Monday, but failed to cross 1.2008. It also failed to enter a strong bullish correction so the pair was flat for most

Paolo Greco 08:38 2023-02-07 UTC+2
Can't speak right now?
Ask your question in the chat.