GBP/USD Signal Update
Yesterday’s signals expired without being triggered.
Today’s GBP/USD Signal
Risk 0.50%.
Entries must be made before 5pm London time.
Long Trade
Enter long after a next bar break of any bullish pin or engulfing hourly candle following the first touch of 1.6425.
Put a stop loss 1 pip below the swing low.
Move the stop loss to break even when the trade is 25 pips in profit or as soon as the price reaches 1.6470. Sell half of the position as profit at 1.6470, and leave the remainder to run.
GBP/USD Analysis
I wrote yesterday that “It seems likely that the move up will continue, due to the strength and important of this long-term bullish trend line below us.” and this was indeed exactly what happened. Looking at the H4 or daily chart shows a classic bullish “U”-shaped bottom has formed.
Continuing bullishness is likely, although we are approaching an area now around 1.6600 where things might get a little choppy for a while.
We may get local support holding at the daily GMT pivot point at 1.6560, as it is confluent with previous resistance.
If we fall sharply and retest the bullish trend line today or tomorrow, that would be a bearish sign, but the bullish “U” does look strong, particularly in combination with the bounce off the long-term bullish trend line that has occurred.
There is the U.K. Retail Sales data release at 9:30am London time. At 12:30pm there will be a release of Unemployment Claims data for the USD, followed by Pending Home Sales at 2pm. Today is likely to be the most active day of the week so far with this pair.