GBP/USD Signal Update
Yesterday’s signals expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75%
Entries may only be made between 8am and 5pm London time today.
Short Trade 1
Short entry following confirming bearish price action on the H1 chart after a first touch of 1.6884.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even and take half the position as profit at 1.6835 and leave the remainder to run until 1.6760.
Long Trade 1
Long entry following confirming bullish price action on the H1 chart after a first touch of 1.6753.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.6790.
Take 50% of the position as profit at 1.6790 and the remainder of the position at 1.6880.
GBP/USD Analysis
Yesterday we failed again to get a real move up above 1.6825, followed by a fall to a level about 10 pips from the support identified previously at 1.6753. On the daily chart yesterday was a bearish engulfing bar which suggests a further move down, although the weekly and monthly charts as well as the overall trend are all decidedly bullish. I said yesterday that we may now get a period of bearish pull back and it looks like this could be happening. That might give us a buying opportunity at 1.6753 or thereabouts.
In spite of the price action looking bearish, today’s movement is quite likely to be dominated by the US new due shortly after New York opens, so if the price remains fairly still before then, the news will probably dominate the day’s direction.
Due to the news releases I would not be looking for any touch trades today but would wait to see a confirmation by price action.
The support at 1.6753 is very confluent with today’s GMT S1 pivot point which should add weight to a long trade taken on a bounce off that level.
There are no high-impact news releases due today that are expected to affect the GBP. Later at 1:30pm London time two items of important US data will be released: Core Durable Goods Orders and Unemployment Claims. Therefore this pair will probably be quiet until the New York Open.