Forex Analysis & Reviews: GBP/USD trading plan for North American session on December 8, 2022. Overview of morning trades. GBP looking for direction
time 08.12.2022 03:01 PM
time Relevance up to, 09.12.2022 03:01 PM

In my morning review, I mentioned the level of 1.2179 and recommended entering the market from there. Let's see what happened on the 5-minute chart. A decline and a false breakout at this level allowed traders to add more long positions on the pair in line with yesterday's trend. Yet, the buying activity was weak. As a result, the price broke through 1.2179 after a while, forcing traders to close their positions with losses. For the second half of the day, the technical outlook has been changed.

This image is no longer relevant

For long positions on GBP/USD:

Today, market participants will take notice of the weekly jobless claims that are unlikely to influence the US dollar. A decline and a false breakout at the new resistance level of 1.2158 will create an excellent entry point into long positions. This may result in the pound rushing to the upside to test 1.2210. A breakout of this range and its downward retest will open the door for bulls by creating a buy signal and sending the price toward 1.2264. The level of 1.2316, which almost coincides with the monthly high, will serve as the highest target where I recommend profit taking. If bulls are unable to drive the price up to 1.2168 in the second half of the day amid low trading volumes, the pair is likely to develop a strong downtrend in order to test yesterday's low at 1.2108. If so, it would be wise to buy the pair at this level only if a false breakout is formed. Going long on GBP/USD right after a rebound is recommended from 1.2057 or lower at 1.1999, bearing in mind an intraday correction of 30-35 pips.

For short positions on GBP/USD:

Bears have slowed down their activity after a failed attempt to seize control in the first half of the day. Now they need to regain control of the 1.2158 level. Strong economic data from the US may support the bearish trend. Even if no important reports are published today, which can be a good factor for the pair, GBP/USD may still depreciate. Sellers will have to focus on the resistance level of 1.2210 as its breakout will change the market balance. Only a false breakout at this level will form an excellent entry point for selling the pair with the downward target at 1.2158. A breakout of this range and its upward retest will create an additional sell signal with a prospect of a further decline to 1.2108 where bears may face resistance. The level of 1.2057 will serve as the lowest target where I recommend profit taking. In case bears fail to push the price down from 1.2210, bulls will attempt to return to the market and send the price higher to 1.2264. A false breakout at this level will give a good entry point into short positions with a prospect of a further decline. If bears show no activity at this level, it is better to sell GBP/USD immediately after a rebound from 1.2316, keeping in mind a possible downward correction of 30-35 pips within the day.

This image is no longer relevant

COT report

The Commitments of Traders (COT) report for November 29 showed a continued decrease in both short and long positions. Apparently, the recent macroeconomic data from the UK has dampened market optimism. A contraction in manufacturing and services activity indicates that the British economy is gradually sliding into a recession. The Bank of England prefers to ignore this fact as its top priority is to tame soaring inflation. According to the latest reports, inflation in the UK continues to accelerate. This is why It is hardly surprising that traders prefer to stay out of the market as they are not sure whether to buy or sell the pound. Given that the pair has strongly advanced since November this year, it is not advisable to open long positions at the current highs. Moreover, the US dollar is very likely to recover next week after the Fed's policy meeting and amid the strong performance of the US economy. The latest COT report revealed that long positions of the non-commercial group of traders decreased by 4,197 to 26,000 while short positions dropped by 4,275 to 62,584. This led to an increase in the negative value of the non-commercial net position to -36,584 versus -35,942 a week ago. The weekly closing price went up to 1.1958 from 1.1892.

This image is no longer relevant

Indicator signals:

Moving Averages

Trading below the 30- and 50-day moving averages indicates market uncertainty.

Please note that the time period and levels of the moving averages are analyzed only for the H1 chart, which differs from the general definition of the classic daily moving averages on the D1 chart.

Bollinger Bands

In case of a decline, the lower band of the indicator at 1.2150 will serve as support.

Description of indicators:

• A moving average of a 50-day period determines the current trend by smoothing volatility and noise; marked in yellow on the chart;

• A moving average of a 30-day period determines the current trend by smoothing volatility and noise; marked in green on the chart;

• MACD Indicator (Moving Average Convergence/Divergence) Fast EMA with a 12-day period; Slow EMA with a 26-day period. SMA with a 9-day period;

• Bollinger Bands: 20-day period;

• Non-commercial traders are speculators such as individual traders, hedge funds, and large institutions who use the futures market for speculative purposes and meet certain requirements;

• Long non-commercial positions represent the total number of long positions opened by non-commercial traders;

• Short non-commercial positions represent the total number of short positions opened by non-commercial traders;

• The non-commercial net position is the difference between short and long positions of non-commercial traders.

Great Britain Pound vs US Dollar
Select timeframe
Start trade
Start trade

บทวิเคราะห์ของทาง InstaForex จะทำให้คุณทราบถึงแนวโน้มของตลาด! ในการที่เป็นลูกค้าของทาง InstaForex นั้นคุณจะได้รับการบริการเพื่อการซื้อขายอย่างเต็มประสิทธิภาพอย่างมากมาย

  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    ฝากเงินในบัญชีของคุณใน $3,000 และรับ $10000 ไปเพิ่ม!
    ใน มกราคม ทางเราได้ออก$10000 ภายในแคมเปญ Chancy Deposit !
    คว้าโอกาสที่จะชนะด้วยการฝากเงิน $3,000 ไปในบัญชีเทรด เมื่อทำตามเงื่อนไขนี้แล้ว คุณก็จะกลายเป็นผู้เข้าร่วมแคมเปญ
  • เทรดให้ดีแล้วคว้ารางวัล
    เติมเงินในบัญชีของคุณอย่างน้อย $500 สมัครเข้าร่วมการแข่งขัน และลุ้นรับรางวัลอุปกรณ์ติดต่อสื่อสารแบบพกพา
  • โบนัส 100%
    โอกาสพิเศษของคุณในการรับโบนัส 100% จากเงินฝากของคุณ
  • โบนัส 55%
    สมัครรับโบนัส 55% สำหรับการฝากทุกครั้ง
  • โบนัส 30%
    รับโบนัส 30% ทุกครั้งที่คุณเติมเงินในบัญชีของคุณ

Recommended Stories

GBP/USD drops as expected with 1.2263 as first target

The GBP/USD pair crashed in the short term as expected as the Dollar Index registered a strong rally. Now, it was trading at 1.2295 at the time of writing

Ralph Shedler 18:02 2023-01-31 UTC+2

USD/JPY needs strong support from FOMC

The USD/JPY pair dropped again and it is challenging the near-term support levels again. In the short term, it seems undecided, so it could resume its range pattern. It's located

Ralph Shedler 17:59 2023-01-31 UTC+2

Trading tips for EUR/USD

Following the strong decline last Friday, which was related to the closure of many long positions, a key support level was formed around 1.08, where buyers could place their stop-loss

Andrey Shevchenko 16:49 2023-01-31 UTC+2

AUD/USD outlook for January 31, 2023

The unexpectedly weak Australian retail sales report put pressure on the Aussie, with AUD/USD slipping further into the Asian trading session and at the beginning of the European session. Thus

Jurij Tolin 13:46 2023-01-31 UTC+2

GBP/USD: trading plan for North American session on January 31. Overview of morning trades. Pound continues to decline

Long positions on GBP/USD: In the first half of the day, there was only one signal to enter the market. Let's have a look at the 5-minute chart and analyze

Miroslaw Bawulski 13:37 2023-01-31 UTC+2

EUR/USD: trading plan for the American session on January 31, 2023 (analysis of morning trades). Euro slumps despite positive GDP data

In my morning forecast I pointed out the level of 1.0840 and recommended making market entry decisions with this level in mind. Let us have a look at the 5-minute

Miroslaw Bawulski 13:36 2023-01-31 UTC+2

EUR/USD and GBP/USD trading plan for beginners on January 31, 2023

For the first time since the formation of the current flat, the EURUSD currency pair was below 1.0835, which may indicate a bias in trading forces in favor of sellers

Gven Podolsky 10:15 2023-01-31 UTC+2

Outlook and trading signals for GBP/USD on January 31. COT report. Analysis of market situation. The pound is preparing for an active week in the flat.

GBP/USD continues to trade flat between levels 1.2342 and 1.2429. Due to the lack of macro releases during the day, it was not surprising that

Paolo Greco 10:02 2023-01-31 UTC+2

Outlook and trading signals for EUR/USD on January 31. COT report. Analysis of market situation. The flat ahead of the storm continues. EUR/USD did not show any interesting movements on Monday

EUR/USD did not show any interesting movements on Monday. Basically, it's a total flat, and we can only hope that this week's fundamental background is enough

Paolo Greco 10:00 2023-01-31 UTC+2

Trading plan for EUR/USD and GBP/USD on January 31

Pound rose to highs for more than a week, but then fell and is currently on its way towards the lows. Most likely, it will continue to decline as forecasts

Mark Bom 09:49 2023-01-31 UTC+2
ระบุคำถามไว้ได้ใน แชท.