GBP/USD Signal Update
Yesterday’s signal expired without being triggered as the price never reached 1.6425.
Today’s GBP/USD Signal
Risk 0.75%.
Enter between 8am and 5pm London time today only.
Long Trade
Take a long entry after the next bar break of any bearish pin or engulfing hourly candle that occurs after the first touch of 1.6425. From two hours following the close of the first hourly candle below 1.6425, this trade is invalidated.
Place the stop loss one pip below the local swing low.
Adjust the stop loss to break even when the trade is 25 pips in profit or as soon as the price reaches 1.6470. Take off 50% of the position as profit at 1.6470, and leave the remainder to ride.
GBP/USD Analysis
Yesterday saw a small move up away from the bullish trend line and the support level at 1.6487, both of which appear to be holding. However it was a quiet day and the move was small. It seems likely that the move up will continue, due to the strength and important of this long-term bullish trend line below us. However a quick break down to 1.6425 could see a strong reaction as a false break down, therefore I am looking for a long trade at that support level.
Above us there is minor resistance at 1.6570, confluent with today’s GMT R2 daily pivot point. However I do not see any obvious short opportunities before 1.6717, which is too far away from the current price to be relevant...
There are no important data releases due for the EUR today. At 12:30pm London time there will be a release of Core Durable Goods Orders data for the USD.