The currency pair of GBP and USD is one of the oldest and most popular currency pairs for Fx trading business. It hosts a nickname which is cable mainly because its analysis was exchanged over the telegraph cables of UK and USA. If you happen to be a fx trader wanting the latest GBP USD analysis, then go through the information present in the segment.
Two things to keep in mind:
Before starting with GBP USD analysis, one thing which you have to consider is that this currency pair experiences substantial swings. Perhaps this is why it is not recommended for new traders. Two things needed to be known for conducting your GBP USD analysis.
- One is being familiar with your spread chart inside out
- And the other the speed at which you can get in or get out from a trade.
Experts suggest some tips to get profits out of this volatile currency pair:
However, if you are planning to go ahead with it, here are some scalping tips to refer.
The recommended suggestion would be referring to a spread chart providing company/website which gives you the lowest or smallest spreads- say about 1 or 2 pips for your GBP USD analysis.
However a word of caution- always be wary of websites or companies who give you fluctuating currency spreads along with the market conditions
- On asking some successful GBP USD analysis conductors, they stated that going with a 1-minute chart having 3 exponential moving averages is appropriate. As per their views- you should set your EMA chart to nbr10 (Nabors chart), nbr20, nbr60. They suggested using red for nbr60, blue for nbr20 and green for nbr10 to differentiate them.
- Though the red indicator will give you an idea about the long-term currency trend, the other two indicators will be the one which you have to use for entry and exit signs in your possible Fx trades. So follow them closely.
- Keep a close watch over the crossover of these 2 moving averages to know about the trend changing directions. As you get a confirmation of this crossover, look for the very recent resistant level needed to be broken. As you have that, get into the trade and as you bring up a close ticket, get ready to get out of the trade.
- Experts suggest the using of a very small stop loss which does not exceed 10 pips. As this currency pair begins stalling, a short time reversal is likely to follow. In such situations exiting the trade with 4-10 pips is much beneficial than incurring a loss. Then if the trade surpasses the following low or high, you can always re-enter the trade.
- For your Forex GBP USD analysis, you can make use of another chart with similar moving averages. Just set the time to 5 mins this time. Check if the crossover occurs when you are still engaged in trade. If it does, then it does prove beneficial moving your stop loss to the starting point and riding out the trend as long as you can.
These are the expert- suggested Forex GBP USD analysis ways by which you will be able to get good profits from scalping this volatile currency pair.
If you are interested in Forex and do plan on making use of these tips for your GBP USD latest analysis, make it a point to practise with a demo account.
Best of luck and off-course happy trading!