GBP/USD Signal Update
Yesterday’s signals were 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 buy stop order at a next bar bullish break of the first pin or engulfing bar rejecting the support zone below 1.6325.
Stop loss at 1.6285.
Move the stop loss to break even at 1.6365 and take 50% of the profit at 1.6378. Leave the remainder of the position to run.
Long Trade 2
Enter long with a buy stop order at a next bar bullish break of the first pin or engulfing bar rejecting the support zone below 1.6235.
Stop loss at the local swing low but not higher than 1.6217.
Move the stop loss to break even at 1.6261 and take 50% of the profit at 1.6322. Leave the remainder of the position to run.
GBP/USD Analysis
The GBP was punished severely and unexpectedly on Monday, falling dramatically against the JPY and moderately strongly against the USD. The slide finally began to slow as we approached the bullish trend line, bouncing off it practically to the pip at 1.6345, from which it went up almost 50 pips. The long touch trade I placed yesterday at the support level of 1.6325 below this trend line was not triggered. The GBP has taken a blow but the bullish line, though looking weak and vulnerable, is intact. We are still within the long-term narrowing bullish channel that began last July.
There is important news due for the GBP this morning at 9:30am London time (CPI year on year), and then later for the USD at 1:30pm (Retail Sales / Core Retail Sales), so this pair is likely to be very active today.
I would be prepared to take both short and long trades today. I mention no short trades as I don’t see any well-established support above before 1.6619, which is too far away for today’s trading. However there are possible levels that might hold as resistance at 1.6425 (this has acted as both support and resistance on the H1 chart over the past two trading days) and 1.6468 (which has also acted as both, but to a lesser extent).