GBP/USD Signal Update
Monday’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 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
We were stuck in a triangle until towards the end of last week, when the triangle broke down. However on Friday we then saw the support level of 1.6325 that I have been highlighting hold firm after a fair amount of downwards pressure, with the price spiking upwards following positive GBP news. The lower triangle trend line then afterwards held on both sides, and the price is now threatening to break up through the upper triangle trend line.
We are almost certainly going to get a move today that will break out one way or another, but the picture is very unclear. It might well be that 1.6325 acts as support again but I will not use this level for a signal for the time being after it was tested so recently.
There is strong support some way below at 1.6235 and strong resistance overhead at 1.6619. These levels are unlikely to come into play today.
It might well be that nothing really happens today, as there is no important news due today for either the GBP or the USD. However, after a public holiday when the trading is very quiet such as yesterday, there is usually a healthy move.