GBP/USD Signal Update
Yesterday’s signals were not triggered and expired. The level of 1.6810 was hit producing a bullish pin bar, but it did not break to the upside.
Today’s GBP/USD Signals
Risk 0.75%
Entries may be made only between 8am and 5pm London time today.
Long Trade 1
Long entry after confirming bullish price action on the H1 chart following the first touch of 1.6748 and the bullish trend line currently at 1.6738. Both should be rejected within the same hour.
Put a stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the price reaches 1.6800.
Take off 50% of the position as profit at 1.6800 and leave the remainder of the position to run.
Short Trade 1
Short entry after confirming bearish price action on the H1 chart following the first touch of 1.6820 IF that happens before the price touches 1.6750.
Put a stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the price reaches 1.6785.
Take profit at 1.6755.
GBP/USD Analysis
Yesterday saw a continuing fall due to bearish fundamental news concerning the GBP. We saw the inner bullish trend line and the support level at 1.6820 breaks down, although the very long-term and far more significant bullish trend line is still intact below us at 1.6738, close to the support level of 1.6748 which was nearly hit yesterday.
We can say that the uptrend is still intact, but beginning to be threatened. If the trend line below us does not hold, I would consider the major upwards trend over.
If we get a sharp rejection off a move down to the trend line and 1.6748, it could be an excellent buying opportunity.
If we move up to 1.6820 before that happens, that should be a good level at which to look for a short, with possible flipped support to resistance and the broken trend line being located there.
There are no high-impact news releases scheduled today concerning the GBP. At 1:30pm London time, there will be the U.S. data releases of Core CPI and Retail Sales. Therefore it may well be a quiet morning until the New York open.