GBP/USD Signal Update
Thursday’s signals was not triggered and expired.
Today’s GBP/USD Signals
Risk 0.50%.
Entry should be made between 8am and 5pm London time today only.
Long Trade 1
Enter long with a limit order at a touch of 1.6325.
Stop loss at 1.6285.
Move the stop loss to break even at 1.6365 and take 50% of the profit at 1.6397. Leave the remainder of the position to run.
Short Trade 1
Enter short with a limit order at a touch of 1.6619.
Stop loss at 1.6660.
Move the stop loss to break even at 1.6530 and leave the position to run.
GBP/USD Analysis
We are still firmly within the long-term narrowing bullish channel that began last July. Friday made a new high and sentiment is against the USD right now. The line of least resistance this morning seems upwards.
However we are at a high price, and approaching a zone from which price dropped quite dramatically the last time it was here. There is a likely strong resistance level at 1.6619 and it might be hard to get up there. Despite that, this pair is generally still looking bullish.
There is no important news due today for either the GBP or for the USD, so today is likely to be fairly quiet, unless there is leftover sentiment from Friday’s data. For this reason, I am prepared to enter touch trades in the unlikely event that the price reaches either 1.6619 or 1.6325 before the London close today.
There is probably some support at 1.6375, which could likely give some long pips, although I am not giving that as a signal. The support at 1.6325 should be stronger, and today it is confluent with the daily S2 pivot point and a 38.2% Fibonacci retracement level.
