GBP/USD Signal Update
Yesterday’s signal was not triggered and expired.
Today’s GBP/USD Signal
Risk 0.50%.
Entry must be taken only before 5pm London time today.
Long Trade
Go long after a next bar break of any bullish pin or engulfing hourly candle forming after a first touch of 1.6425. After one hour from the close of the first hourly candle below 1.6425, the trade should not be taken.
Put a stop loss one pip under the local swing low.
Move the stop loss to break even once the trade is 25 pips in profit or at 1.6470, whichever occurs first, and take 50% of the position as profit. Leave the remaining 50% to run.
GBP/USD Analysis
Very little happened yesterday, trading in this pair was quiet. However despite that it is significant that the bullish trend line and the support level at 1.6487 are more or less holding. If the next directional move is upwards, it is quite likely to be strong as we are coming off a very significant trend line.
Despite that, as we have been sitting here for a while I will not take any long trades off this area yet; instead I am looking for the price to fall to the next key support level of 1.6425 before looking for a long.
Above us there is possible resistance at 1.6570 which is confluent with today’s GMT R2 daily pivot point. However that level looks a little too weak so I am not looking to short there. I do not see any obvious short opportunities before 1.6717, which is too far away from the current price to be relevant to us today.
A decisive move away from the trend line one way or another will probably set the tone for the coming days.
There are important data releases due for both the GBP and the USD today. At 9:30am London time there will be the UK CPI data and then later at 2pm there will be US data (CB Consumer Confidence and New Home Sales).