GBP/USD Signal Update
Yesterday’s signal expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75%
Entry before 5pm London time
Long Trade 1
Enter long when confirmed by H1 price action at the first touch of the major bullish trend line currently at around 1.6554.
Put a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.6575.
Remove 50% of the position as profit at 1.6590 and leave the rest of the position to ride.
Short Trade 1
Enter short when confirmed by H1 price action at the first touch of 1.6656.
Put a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.6632.
Remove 50% of the position as profit at 1.6632 and the remaining half at 1.6604.
GBP/USD Analysis
Yesterday we saw a few bullish signs: the pair made a stronger move up than is usual for a Monday with no high-impact news releases, the resistance at around 1.6600 seems to have flipped to support, and of course we have begun to move up significantly from the touch of the support level of 1.6556 that occurred last week.
Countering this, it seems that 1.6622 may have flipped from support to resistance, which would be a bearish sign, but at the time of writing the price seems to be easily breaking through this level.
We are also of course still within a long-term bullish channel and candlestick analysis looks bullish on all the higher time frames, so our bias should be bullish.
The 1.6600 level could be an interesting place to look for a long trade but I prefer to wait until tomorrow as we need a little distance from the last touch there.
It might be choppy before the GBP news as we are hemmed into a tight zone between support and resistance right now between 1.6600 and 1.6622. It is too early to think about looking for a short at 1.6622.
There is flipped resistance above us at 1.6656 which is exactly confluent with today’s GMT R2 pivot point. Even with a bullish bias, this could be an attractive level to look for a short if confirmed by price action.
At 9:30am London time there will be a release of UK Manufacturing Production data. Later at 3pm there will be data pertaining to the USD, the JOLTS Job Openings. It should be a more active day then yesterday was, but should still be relatively quiet in advance of tomorrow’s FOMC Statement in the USA.