GBP/USD Signal Update
Last Thursday’s signals were not triggered and expired. The price did reach the expected support level of 1.6450, but failed to print a pin or engulfing bar on its first rebound.
Today’s GBP/USD Signal
Risk 0.50%.
Entry should be made between 8am and 8pm 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 1.6325. 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 limit sell order at a first touch of 1.6620.
Stop loss at 1.6665.
Move the stop loss to break even when the trade is 25 pips in profit and let it run.
GBP/USD Analysis
There has been no fundamental change in the technical picture, but Thursday and Friday saw further moves in favour of the USD and we are now approaching the long-term bullish trend line. The overall bias should still be long as we are still established in a narrowing bullish channel that has been intact since the summer of 2013; however shorts may well also have scope to run. There are no obviously good resistance levels above us before 1.6620 although 1.6450 may come into play tomorrow if it is not touched today. It may in any case be reactive if touched today, so it would be wise to be careful at around that level.
There is important news due today for both the GBP at 9:30am London time (Manufacturing PMI) and also later on for the USD at 3pm (ISM Manufacturing PMI). Therefore, this pair might be more active today than is usual for a Monday.