Wave Analysis by InstaForex

Indicator Analysis of GBP/USD on March 11, 2024


Open trading account Open demo account Deposit money Money withdrawal Open trading account Open demo account Trend analysis (Fig. 1). The GBP/USD currency pair may move downward from the level of 1.2855 (closing of Friday's daily candlestick) to the 14.6% pullback level at 1.2837 (yellow dotted line). From there, an upward movement is possible to the upper fractal at 1.2892 (yellow dotted line). Fig. 1 (daily chart). Comprehensive analysis: Indicator analysis – down; Fibonacci levels – down; Volumes – down; Candlestick analysis – down; Trend analysis – up; Bollinger bands – up; Weekly chart – up. General conclusion: Today, the price may move downward from the level of 1.2855 (closing of Friday's daily candlestick) to the 14.6% pullback level at 1.2837 (yellow dotted line). From there, an upward movement is possible to the upper fractal at 1.2892 (yellow dotted line). Alternatively, from the level of 1.2855 (closing of Friday's daily candle), the price may move downward to the 23.6% pullback level at 1.2804 (yellow dotted line). From there, an upward movement is possible to the upper fractal at 1.2892 (yellow dotted line).

Analysis are provided by InstaForex


Read more: https://ifxpr.com/3PevvFY

Analysis of transactions and tips for trading GBP/USD



The test of 1.2831 took place at a time when the MACD line moved downward from zero. This provoked a sell signal, which led to a price decrease of around 30 pips. The pair reached the target level of 1.2805.

Buying from this level for a rebound did not yield the expected results. Data on the UK's jobless claims, unemployment rate, and average earnings will come out today. The last indicator attracts the most attention, as a sharp decrease will weaken the position of pound, leading to a decline in the pair.

For long positions: Buy when pound hits 1.2829 (green line on the chart) and take profit at the price of 1.2857 (thicker green line on the chart). Growth will occur only after good and strong data on the UK labor market. When buying, ensure that the MACD line lies above zero or just starts to rise from it.

Pound can also be bought after two consecutive price tests of 1.2804, but the MACD line should be in the oversold area as only by that will the market reverse to 1.2829 and 1.2857. For short positions: Sell when pound reaches 1.2804 (red line on the chart) and take profit at the price of 1.2770. Pressure will return after an unsuccessful attempt to break through the local high. When selling, ensure that the MACD line lies below zero or drops down from it.

Pound can also be sold after two consecutive price tests of 1.2829, but the MACD line should be in the overbought area as only by that will the market reverse to 1.2804 and 1.2770. 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 decisions based on the current market situation is an inherently losing strategy for an intraday trader.


Analysis are provided byInstaForex.

Read More

Indicator Analysis of GBP/USD on March 13, 2024



Today, the price may move upward from the level of 1.2789 (closing of yesterday's daily candle) to the 14.6% pullback level at 1.2837 (yellow dotted line). In the case of testing this level, a continued upward movement is possible to the historical resistance level at 1.2847 (blue dotted line). Alternatively, from the level of 1.2789 (closing of yesterday's daily candle), the price may move upward to the 14.6% pullback level at 1.2837 (yellow dotted line). In the case of testing this level, a downward movement is possible to the historical resistance level at 1.2772 (blue dotted line).

Analysis are provided byInstaForex.

Read More

Forex Analysis & Reviews: GBP/USD. March 14th. The UK GDP provided positive results, but traders have taken a new break



On the hourly chart, the GBP/USD pair traded exclusively horizontally on Wednesday. It traded in the range of 1.2788–1.2801. There were no advantages for either bears or bulls on Wednesday, and neither category of traders attempted to take active action during the day. Thus, the zone of 1.2788–1.2801 cannot currently be considered a source of trading signals. The pair failed to rebound from it or consolidate above it.

The wave situation has been clear recently. The bulls have launched an active offensive, and we have already seen three consecutive upward waves. The last upward wave managed to break through the previous peak from February 22nd, so there are currently no signs of a trend change to "bearish." The sideways movement seems to be over since the pound has risen above all the peaks of the past few months. However, the risk of a resumption of sideways movement remains if bears launch their offensive from current levels. The last downward wave is too weak compared to the previous upward wave. The pair needs to decline at least to the level of 1.2584 to show the first sign of a trend change to "bearish." Alternatively, the new upward wave should not break the peak on March 8th. On Wednesday, the GDP volume for January was announced in the UK. The British economy grew by 0.2%, as traders expected. Industrial production decreased by 0.2% in volume, which was below market expectations. However, the first report did not help the pound resume its growth, and the second report did not provide sufficient grounds for bears to launch an offensive. There were no significant events in America yesterday. Today, we expect several reports from the US, but trader activity is currently extremely low, so I do not expect strong exchange rate fluctuations.

On the 4-hour chart, the pair consolidated above the corrective level of 61.8% (1.2745), which allows us to count on further growth towards the level of 1.3044. The pound has risen very strongly over the past few weeks, practically without informational support. The strength of the bulls may be waning. There are no emerging divergences observed in any of the indicators today. A rebound of quotes from the level of 1.2745 may increase the pair's chances of continuing to rise, but a consolidation below this level will work in favor of the US dollar and improve the chances of bears.

On Thursday, the economic events calendar contains only three interesting but not the most important entries. The impact of the information background on market sentiment today may be weak. Forecast for GBP/USD and trader advice: Sales of the pound today can be considered when closing below the level of 1.2745 on the 4-hour chart with targets in the range of 1.2705–1.2715 and the level of 1.2620. Purchases were possible on a rebound on the 4-hour chart from the level of 1.2745 to a target of 1.2876.

Analysis are provided byInstaForex.

Read more: https://ifxpr.com/4ae5lLy

Forex Analysis & Reviews: EUR/USD. March 15th. The bears have launched a long-awaited offensive


The EUR/USD pair made a new reversal in favor of the American currency on Thursday and resumed its downward movement after closing below the ascending trend channel. Thus, the decline in quotes may continue down to the Fibonacci level of 38.2%–1.0866. A rebound of the pair's rate from this level will benefit the European currency and may lead to some growth towards the corrective level of 50.0%–1.0918. Consolidation of quotes below 1.0866 will increase the pair's chances of further decline towards the next corrective level of 23.6%–1.0801.



The wave situation remains quite clear. The last completed upward wave confidently broke the peak of the previous wave (from February 22). Thus, we currently have a "bullish" trend, and there are no signs of its completion. Currently, a new downward wave is beginning to form but to determine a shift in sentiment to "bearish," a breakthrough of zone 1.0785–1.0801 is required. Until this moment, we observe only a corrective wave, after which the "bullish" trend may resume. The waves are currently quite large, but daily trader activity is not at its highest level. I believe that the support zone of 1.0785–1.0801 is a good target for traders. The news background on Thursday was interesting. We learned that retail sales volumes in the US turned out to be slightly below market expectations, but at the same time, the Producer Price Index surged by 0.6% in February, which does not bode well for the US economy as inflation may continue to rise, as it did in February. However, such a value is positive for the American currency, as the Fed may now adhere to a hawkish policy longer than traders expect. At the same time, the ECB may start easing monetary policy as early as June.



Forecast for EUR/USD and trader recommendations: Sales of the pair were possible upon a rebound from the level of 1.0959 on the 4-hour chart, with targets at 1.0918 and 1.0866. The first target has been hit, and the second one may be hit today. New sales are possible upon closing below the level of 1.0866 with a target of 1.0801. Buying the pair is possible upon a rebound from the level of 1.0866 on the hourly chart with targets at 1.0918 and 1.0959. Or upon a rebound from the lower line of the channel on the 4-hour chart.





Analysis are provided byInstaForex.


Read more: https://ifxpr.com/4cjZR42

Forex Analysis & Reviews: Indicator Analysis of EUR/USD on March 18, 2024









Today, the price may move upward from the level of 1.0887 (closing of Friday's daily candlestick) to 1.0917, the 50% pullback level (red dotted line). In the case of testing this level, a continued upward movement is possible with a target of 1.0939, the historical resistance level (blue dotted line). Alternatively, from the level of 1.0887 (closing of Friday's daily candlestick), the price may move downward to 1.0871, the 38.2% pullback level (blue dotted line). In the case of testing this level, an upward movement is possible to 1.0917, the 50% pullback level (red dotted line).





Analysis are provided byInstaForex.



Read more: https://ifxpr.com/3Pl7gWz

Forex Analysis & Reviews: Overview of the GBP/USD pair. March 19th. Ahead of the Fed meeting







The GBP/USD pair broke out of the flat and attempted to resume the uptrend. But we still expect a resumption of the downward movement with targets at 1.2543 and 1.2512. The market still very reluctantly buys the dollar and sells the pound, completely ignoring the fundamental and macroeconomic background. This week, it can easily interpret the received information in favor of the pound, even if it is in favor of the dollar. Formally, long positions can be considered when the price is above the moving average, but now the long-awaited consolidation below the moving average has occurred. Therefore, we support any sales of the pair. Explanations for the illustrations: Linear regression channels - help determine the current trend. If both are pointing in the same direction, it means the trend is currently strong. The moving average line (settings 20.0, smoothed) - determines the short-term trend and the direction in which trading should be conducted now. Murray levels - target levels for movements and corrections. Volatility levels (red lines) - the probable price channel in which the pair will spend the next day, based on current volatility indicators. CCI indicator - its entry into oversold territory (below -250) or overbought territory (above +250) indicates that a trend reversal towards the opposite direction is approaching.





Analysis are provided by InstaForex.





Read more: https://ifxpr.com/43k0uXb

Forex Analysis & Reviews: EUR/USD and GBP/USD: Technical analysis on March 20




Higher Timeframes During the previous trading session, bearish players reached and were able to test the crucial milestone of 1.0839, which consolidated several significant levels across different timeframes. However, the day's outcome was once again fixed within the attraction zone of 1.0876 – 1.0862. As a result, the primary task for bearish players remained the same. New bearish targets and plans can only emerge after bearish players manage to overcome the supports at 1.0876 – 1.0862 – 1.0839 and consolidate below. For bullish players, the benchmarks remain unchanged, situated around 1.0909 – 1.0915 – 1.0918 (daily short-term trend + upper boundaries of the daily and weekly Ichimoku clouds).




H4 – H1 On lower timeframes, a corrective upward movement is currently unfolding, with the weekly long-term trend (1.0895) serving as the main reference point. It should be noted that the key level of lower timeframes today is positioned above the current zone of influence of higher timeframes, so a breakthrough and trend reversal could align with the possibilities of higher timeframes, creating good conditions for changing the current balance of power. The next targets for the upward movement within the day will be the resistances of the classic pivot points R2 (1.0901) and R3 (1.0925). The development of bearish sentiments within the day in the current situation may involve passing through the supports of classic pivot points (1.0859 – 1.0841 – 1.0817 – 1.0799). ***




H4 – H1 The main advantage on lower timeframes currently continues to favor bearish players. Targets for resuming the decline within the day today are located at the levels of 1.2705 – 1.2679 – 1.2640 – 1.2614 (classic pivot points). However, if the current corrective upward movement persists, then for a change in the current balance of power, bullish players must break through and reverse the weekly long-term trend (1.2746). Afterward, they will encounter resistances of classic pivot points (1.2770 – 1.2809), reinforced by resistances from higher timeframes (1.2755-79). *** The technical analysis of the situation uses: Higher timeframes - Ichimoku Kinko Hyo (9.26.52) + Fibonacci Kijun levels Lower timeframes - H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)



Analysis are provided by InstaForex.



Read more: https://ifxpr.com/3IIX9XZ

Forex Analysis & Reviews: Analysis and trading tips for EUR/USD on March 21




Analysis of transactions and tips for trading EUR/USD Further growth became limited because the test of 1.0857 occurred during the sharp rise of the MACD line from zero. Then, a good market movement arose after the Fed's decision, bringing around 50 pips of profit. The Fed said they would stick to their path of reducing interest rates even though they encountered obstacles on the way to low and stable inflation. This led to a decline in dollar and purchases of euro. The upward trend in EUR/USD will continue today as long as Manufacturing PMI, Service PMI, and Composite PMI data for the eurozone exceed expectations.





For long positions: Buy when euro hits 1.0946 (green line on the chart) and take profit at the price of 1.1003. Growth will occur after very good statistics from Germany and the eurozone, especially in the manufacturing sector. When buying, make sure that the MACD line lies above zero or rises from it. Euro can also be bought after two consecutive price tests of 1.0921, but the MACD line should be in the oversold area as only by that will the market reverse to 1.0946 and 1.1003. For short positions: Sell when euro reaches 1.0921 (red line on the chart) and take profit at the price of 1.0875. Pressure will increase in the case of unsuccessful bullish activity around the daily high and weak data. When selling, make sure that the MACD line lies under zero or drops down from it. Euro can also be sold after two consecutive price tests of 1.0946, but the MACD line should be in the overbought area as only by that will the market reverse to 1.0921 and 1.0875.

Analysis are provided by InstaForex.

Read more: https://ifxpr.com/3vkPEn1

Forex Analysis & Reviews: Indicator Analysis of EUR/USD on March 22, 2024



Today, the price may move downward from the level of 1.0860 (closing of yesterday's daily candlestick) to 1.0836, the historical support level (blue dotted line).



In the case of testing this level, an upward movement is possible, with a target of 1.0864, the 38.2% pullback level (red dotted line). Alternatively, from the level of 1.0860 (closing of yesterday's daily candlestick), the price may move downward to 1.0836, the historical support level (blue dotted line). In the case of testing this level, a continued downward movement is possible with a target of 1.0804, the 61.8% pullback level (blue dotted line).





Analysis are provided by InstaForex.



Read more: https://ifxpr.com/43s42GS