GBP/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s GBP/USD Signals
Risk 0.50%.
Entry should be made before 5pm London time today only.
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 1.6235. The trade is invalidated once an hourly bar closes below this level.
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.
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 1.6475. The trade is invalidated once an hourly bar closes above this level.
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
GBP/USD Analysis
Yesterday, as expected, was a very quiet day. The only significant development is that we seem to be in the process of carving out 1.6425 as a new key resistance level, although it is a little too soon to trade off this. I do not give this as a signal but should London open below 1.6400 it would be wise for day traders to look for short trades on any continuing fall.
Although we have carved out what looks to be a strong bottom below 1.6340, I am not as bullish as Christopher Lewis, and believe we could see the price fall back after meeting the 23.6% Fibonacci level which has acted support before flipping to resistance, or even before this. Additionally, that area at 1.6475 is today very confluent with the broken bullish trend line, which should help by adding resistance pressure at the next retest. This combination makes me prepared to look at a short trade off 1.6475.
The short-term trend is unclear.
There is no important news due today for the GBP. Concerning the USD, the new Chair of the Federal Reserve is speaking today at 3pm London time, at the same time as the JOLT Jobs Openings data is released. It is likely to be a quiet morning, followed by a more active New York session from about 2:30pm London time.