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 bounce off 1.6620. The trade will not be valid 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 ride.
GBP/USD Analysis
Yesterday saw another move down to 1.6654, in fact a little below that level, before the price recovered and moved up about 70 pips before falling off again later yesterday. This is not too different from what happened on Tuesday also. The price action suggests that the demand at 1.6654 is almost used up and so the price, which is beginning to consolidate, should fall lower before moving up again.
I am still looking for support at 1.6620 and we may hit this level soon. I do not see any good tradable levels above us at which it would be worth looking for shorts right now.
The longer-term picture shows that we are still well established in a long-term bullish channel.
There are no important data releases today for the GBP. Concerning the USD, there is major data at 1:30pm (Core CPI and Unemployment Claims), followed by the Philly Fed Manufacturing Index at 3pm. Therefore this pair should have a fairly quiet morning, becoming more active only after New York opens.