GBP/USD Signal Update
Thursday’s signals were not triggered and expired.
Today’s GBP/USD Signals
Risk 0.50%.
Entry should be made between 8am and 1pm London time today only.
Long Trade 1
Enter long with a buy limit order at the first touch of 1.6235.
Stop loss at 1.6195.
Move the stop loss to break even when the trade is 25 pips in profit and leave the position to run.
Short Trade 1
Enter short with a sell limit order at the first touch of 1.6619.
Stop loss at 1.6660.
Move the stop loss to break even when the trade is 40 pips in profit and leave the position to run.
GBP/USD Analysis
Towards the end of last week we saw selling pressure and a break down through the long-term bullish trend line, which was a significant development. The price then severely tested the support at around 1.6325, which held, and then spiked upwards following positive GBP news on Friday. I leave the broken bullish trend line in the chart but it is not likely to be of any use. Instead we have a new bearish trend line that is forming a triangle with 1.6325 as its base:
As things are so uncertain, I don’t see clear levels to trade confidently that are close by, therefore I have outlined above touch trades in either direction that are quite far away from the current price. Just like last week, it could be possible to scalp off localized support at 1.6325, but I am not giving that as a signal.
It might well be that nothing really happens today, as there is no important news due today for either the GBP or the USD, in fact it is a public holiday in the USA, so this pair is likely to be very quiet.