GBP/USD Signal Update
Yesterday’s signals were not triggered.
Today’s GBP/USD Signals
Risk 0.50%.
Entry should be made before 5pm London time today only.
Long Trade
Enter a long touch trade by placing a limit order at 1.6261 with an initial stop loss at 1.6216.
Take profit on 75% of the position at 1.6320 and move the stop loss to break even.
Take half of the remainder of the position as profit when the price retests the broken trend line marked in the charts below. Let the rest of the position ride.
GBP/USD Analysis
A whole slew of important US economic data is expected at 1:30pm London time today, therefore this pair is likely to be most active around that time.
The broad outlook shows that this pair, which has been in a strong uptrend, has not been making new highs lately, but is still contained within a long-term bullish channel which has held for about a month now:
Yesterday, the price did hit 1.6392, and we were looking for longs at this level, however the level did not really hold at all and watching the closes of the hourly candles as advised would have kept you out of any long trade here. There was a bounce up, but it came from a lower level.
Looking at the picture today, we are pretty close right now to the lower trend lines within the channel, the lower of which right now is quite confluent with yesterday's low of 1.6338, as can be seen from the zoomed-in chart below:
A sharp rejection of this level, the lower trend line and the S1 pivot at 1.6325 could be a logical long trade, but I am not giving that as a signal.
There are no strong flipped S/R levels anywhere near the price before 1.6257, which I think is going to hold, so a long touch trade there (given the considerable price distance to this point) is the only signal I am highlighting today for this pair.