GBP/USD Signal Update
Yesterday’s signal was 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 1.6620. The trade is invalidated once an hourly bar closes above this level.
Stop loss at 25 pips.
Move the stop loss to break even when the trade is 25 pips in profit and let it run.
GBP/USD Analysis
Yesterday saw a move down to 1.6654 before the price recovered and moved up about 70 pips before falling off again later yesterday. The 1.6654 level was the GMT close between two daily candles during the recent parabolic move, so it is not a big surprise that we got a bounce there. However such bounces are usually stronger and this one looks weak, so there is a good chance we are going to move down to the next support level not far below at 1.6620, where I am looking for a long trade. The very early price action this morning did suggest a move down, however things as I write are looking more bullish so that seems in doubt. The news coming this morning is quite likely to decide the initial direction. Certainly, the next major move should be upwards and it may have started already. There should be plenty of bullish momentum left over from last week.
I do not see any good levels at which it would be worth looking for shorts.
The longer-term picture shows that we are still firmly established in a long-term bullish channel, so the shorter-term and longer-term pictures are aligned together right now.
There is important news due today for both the GBP and the USD, so the pair is likely to be very active over the next 12 hours or so. At 9:30am London time, there are a slew of data releases: Claimant Count Change, MPC Asset Purchase Facility and Official Bank Rate votes, and the Unemployment Rate. Concerning the USD, at 1:30pm London time there is data regarding Building Permits and PPI, followed by the FOMC minutes at 9pm. It should be a busy day.