empty
10.05.2022 12:23 PM
Analysis and trading tips for GBP/USD on May 10

Analysis of transactions in the GBP / USD pair

GBP/USD is slowly recovering from the sharp fall that occurred because of the latest policy decision of the Bank of England. Most likely, the quote will continue rising today as there are no scheduled statistics for the UK. However, sellers will certainly use any good correction that can give them more attractive prices than now, which will clearly limit the upward potential of the pair.

In the afternoon, the US will release a report on economic optimism, but that will not really shake the markets. Instead, the upcoming speeches of Fed members John Williams, Raphael Bostic and Loretta Mester will be decisive, especially if their statements are hawkish. Such rhetoric will ramp up demand for dollar, which, in turn, will lead to another decline in GBP/USD.

This image is no longer relevant

For long positions:

Buy pound when the quote reaches 1.2393 (green line on the chart) and take profit at the price of 1.2457 (thicker green line on the chart). There is a chance for a rally today, but only after the breakdown of the upper boundary of the side channel. Nevertheless, when buying, make sure that the MACD line is above zero, or is starting to rise from it. It is also possible to buy at 1.2348, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2393 and 1.2457.

For short positions:

Sell pound when the quote reaches 1.2348 (red line on the chart) and take profit at the price of 1.2277. Pressure may return at any moment, especially if Fed officials talk about inflation and interest rates again. However, before selling, traders should make sure that the MACD line is below zero, or is starting to move down from it. Pound can also be sold at 1.2393, but the MACD line should be in the overbought area, as only by that will the market reverse to 1.2348 and 1.2277.

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.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
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

Recommended Stories

USD/JPY: Simple Trading Tips for Beginner Traders on March 14th (U.S. Session)

The 148.72 price test occurred when the MACD indicator had already moved significantly above the zero level, limiting the pair's upward potential. For this reason

Jakub Novak 16:50 2025-03-14 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on March 14th (U.S. Session)

The 1.2934 price test coincided with the MACD indicator beginning its downward movement from the zero level, confirming the validity of the entry point. As a result, the pair declined

Jakub Novak 16:02 2025-03-14 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on March 14th (U.S. Session)

The 1.0861 price test occurred when the MACD indicator had already risen significantly above the zero level, limiting the pair's upward potential. For this reason

Jakub Novak 15:40 2025-03-14 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on March 14. Review of Yesterday's Forex Trades

The test of the price level at 148.02 occurred when the MACD indicator had just started to move downward from the zero mark, confirming a valid entry point for selling

Jakub Novak 08:20 2025-03-14 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on March 14. Review of Yesterday's Forex Trades

The first test of the 1.2941 price level occurred when the MACD indicator had already moved significantly downward from the zero mark, limiting the pair's downside potential. For this reason

Jakub Novak 08:20 2025-03-14 UTC+2

EUR/USD: Simple Trading Tips for Beginner Traders on March 14. Review of Yesterday's Forex Trades

The price test at 1.0865 occurred when the MACD indicator had already moved significantly downward from the zero mark, which limited the pair's downside potential in my opinion. For this

Jakub Novak 08:19 2025-03-14 UTC+2

Intraday Strategies for Beginner Traders on March 14

The euro and the pound are both experiencing a correction, although it's not very pronounced and could quickly shift into a new wave of growth for risk assets, with weekly

Miroslaw Bawulski 07:19 2025-03-14 UTC+2

USD/JPY: Simple Trading Tips for Beginner Traders on March 13th (U.S. Session)

The price test at 147.64 occurred when the MACD indicator had already moved significantly downward from the zero mark, which limited the pair's downward potential. For this reason

Jakub Novak 18:38 2025-03-13 UTC+2

GBP/USD: Simple Trading Tips for Beginner Traders on March 13th (U.S. Session)

The price test at 1.2945 occurred when the MACD indicator had already moved significantly downward from the zero mark, which limited the pair's downward potential. For this reason

Jakub Novak 18:35 2025-03-13 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.