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.
Short Trade 1
Enter short with a stop sell order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.6619. Once an hourly bar closes above that level, the trade is invalidated.
Stop loss at the local swing high.
Move the stop loss to break even when the trade is 25 pips in profit and take some profit. Take the remainder of the position as profit at 1.6510.
Long Trade 1
Enter long with a stop buy order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.6450.
Stop loss at the local swing low.
Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take half the position as profit at 1.6540.
GBP/USD Analysis
Yesterday as soon as GBP-positive news was released the price shot up by about 60 pips. We broke out of the high of the daily inside bar at around 1.6450 that has acted as resistance for a few days, and the move up began with a retest of that level. Therefore we can expect this level to be established as likely support at any retest.
The pair looks bullish now and even threatened yesterday to reach 1.6600. We are not far off the multi-year high that was established last month. There is old support turned into resistance at 1.6619 which is quite likely to provide a short opportunity if reached today. This level is quite confluent with today’s R1 daily pivot point.
There may also be support at the key psychological level of 1.6500, which recently acted as resistance.
There is important news due today for both the GBP and for the USD. There is CBI Realised Sales at 11am London time. Later there are U.S. Unemployment Claims at 1:30, then Existing Home Sales at 3pm.