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29.02.2024 01:36 PM
Analysis and trading tips for GBP/USD on February 29 (US session)

Analysis of transactions and trading tips on GBP/USD

Further growth became limited as the test of 1.2671 took place at a time when the MACD line moved upward quite strongly from zero.

Ahead lies data on personal consumption expenditure, household spending, income level, jobless claims, Chicago PMI, and pending home sales in the US. Positive statistics will lead to a rise in dollar demand and a continued decline in pound. Statements from FOMC members Raphael Bostic and Loretta Mester could also fuel further growth in USD.

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For long positions:

Buy when pound hits 1.2672 (green line on the chart) and take profit at the price of 1.2705 (thicker green line on the chart). Growth will occur after weak data from the US. This may lead to an update of the daily high.

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 1.2652, but the MACD line should be in the oversold area, as only by that will the market reverse to 1.2672 and 1.2705.

For short positions:

Sell when pound reaches 1.2652 (red line on the chart) and take profit at the price of 1.2615. Pressure will increase in the case of strong US statistics.

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 1.2672, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2652 and 1.2615.

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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.

Jakub Novak,
Analytical expert of InstaForex
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