Forex Analysis & Reviews: 08.12.2021 - Analysis and trading tips...

08.12.2021 09:52 AM

Analysis and trading tips for GBP/USD on December 8, 2021

Analysis of transactions in the GBP/USD pair

Only one single entry point into the market was formed for the pound yesterday, but it had to be ignored. When the level of 1.3271 is being tested, the MACD indicator had already gone down quite a lot from zero, which seriously limited the pair's downward potential. Due to this, we did not enter the market. No other signals were formed during the day.

Today, there are no important fundamental statistics for the UK again, so buyers' entire focus will be on building a further upward correction of the pair. The fact that they managed to prevent the monthly lows from updating yesterday indicates a clear desire of buyers to quickly end the bearish chaos that we have seen all autumn. The second half of the day may pass quite quietly since there are no important fundamental statistics on the US economy. The report on the level of vacancies and labor turnover from the Bureau of Labor Statistics and the placement of 10-year bonds are unlikely to seriously affect the direction of the market. For this reason, buyers have every chance to increase the pound.

For long positions:

Buying the pound can be considered when it reaches the entry point in the area of 1.3261 (green line on the chart) with the aim of rising to the level of 1.3300 (thicker green line on the chart). In the area of 1.3300, it is recommended to exit purchases and open sales in the opposite direction (counting on a movement of 15-20 points in the opposite direction from the level). It is possible to count on the growth of the pound today in order to build an upward correction, which has been asking for quite a long time. Before buying, one should make sure that the MACD indicator is above the zero mark and is just beginning its growth.

It is also possible to buy the pound today if the price reaches the level of 1.3245, but at this moment the MACD indicator should be in the oversold area, which will limit the downward potential of the pair and lead to an upward reversal of the market. Growth to the opposite levels of 1.3261 and 1.3300 can be expected.

For short positions:

Selling the pound can be considered only after updating the level of 1.3245 (the red line on the chart), which will lead to a rapid decline of the pair. The key target of sellers will be the 1.3216 level, where it is suggested to leave sales, as well as immediately open purchases in the opposite direction (counting on a movement of 15-20 points in the opposite direction from the level). In the event of a breakout of the weekly low, the pressure on the pound will seriously increase. Before selling, one should make sure that the MACD indicator is below the zero mark and is just beginning its decline.

It is also possible to sell the pound if the price reaches the level of 1.3261, but at this moment the MACD indicator should be in the overbought area, which will limit the upward potential of the pair and lead to a reverse market reversal down. We can expect a decline to the opposite levels of 1.3245 and 1.3216.

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.

Remember, a clear trading plan is needed for successful trading. Spontaneous trading decisions based on the current market situation are an inherently losing strategy for an intraday trader.

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

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# GBPUSD # For beginners Forecast

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