empty
 
 
03.10.2022 05:54 PM
Trading Signal for GBP/USD on October 3-4, 2022: sell in case of pullback at 1.1330 (symmetrical triangle - 7/8 Murray)

This image is no longer relevant

GBP/USD pair is gaining momentum after UK Finance Minister Kwasi Kwarteng confirmed that his government would not go ahead with the plan to remove the 45% income tax rate. The last candles on the 4-hour chart are showing strong volatility which is likely to continue to rise in the American session.

British Pound is trading around 7/8 Murray located at 1.1230 following a strong bullish bias which is likely to continue. This level (7/8) represents a reversal zone. If the British pound manages to consolidate below this level, we could expect the bearish move to resume and GBP/USD could reach the 21 SMA at 1.0987.

On the other hand, in case the GBP/USD pair continues to rise, it is expected to face strong resistance from the downtrend channel, formed at the beginning of August. The channel and the 200 EMA both converge at 1.1423.

On the 4-hour chart, we can see the formation of an ascending triangle whose break could be a bearish signal and the price could fall towards 6/8 Murray at 1.0742.

We can see that the British pound is trading within this ascending channel. If it continues to rise in the next few hours, GBP/USD could go up to the top of this pattern around 1.1330 which will be seen as an opportunity to sell around this area.

The key could be to wait for the British pound to reach the top of a symmetrical triangle around 1.1330 to sell, with targets at 1.1230 (7/8 Murray) and the psychological level of 1.10. The eagle indicator is reaching overbought levels and it is likely that in the coming hours it could show signs of exhaustion.

Dimitrios Zappas,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • 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 $8000 more!
    In March we raffle $8000 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

Can't speak right now?
Ask your question in the chat.
Widget callback