GBP/USD Signal Update
Yesterday’s long signal was not triggered and expired.
Today’s GBP/USD Signal
Risk 0.50%.
Entry before 5pm London time today only.
Long Trade
Enter long with a limit order at 1.6475.
Place the stop loss 30 pips away at 1.6445.
Move the stop loss to break even when the trade is 45 pips in profit, and take 75% of the position as profit. Leave the rest of the position to run.
GBP/USD Analysis
I was correct in expecting yesterday that we might need to fall before we could rise again. As it happened, this pair was probably dragged down a bit by the fall in the EUR/USD. Although I was not looking to trade off 1.6620 just yet, it held again, as yesterday’s low, before bouncing up somewhat to where it is now.
I still do not want to try to trade long off 1.6620 yet. Therefore I am only looking for another long opportunity at the next significant level below that, at 1.6475.
There are no really good resistance levels above us but it can be seen that 1.6720 continues to act as a barrier.
The higher time frames’ candlesticks are somewhat weak and inconclusive. The monthly candle however is about to complete a bullish engulfing candle. The weekly and daily candles are less conclusive, but still bullish.
It is likely that the US news and events scheduled for later today will shake up the quiet picture enough to produce a new and clearer picture tomorrow. Until then, it might still be possible to scalp between 1.6620, which is very confluent with today’s S1 GMT daily pivot point, and 1.6720.
There is no important data scheduled for release today related to the EUR. However, concerning the USD there will be Core Durable Goods Orders and Unemployment Claims at 1:30pm London time, and the Chair of the Federal Reserve will be testifying at 3pm London time.