GBP/USD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action when the pair reached 1.6805.
Today’s GBP/USD Signals
Risk 0.25%.
Entries must be made before 5pm London time today.
Long Trade 1
Long upon the first touch of 1.6738.
Put a stop loss at 1.6688.
Adjust the stop loss to break even when the price reaches 1.6775.
Remove 50% of the position as profit at 1.6775 and leave the remainder of the position to run.
GBP/USD Analysis
This pair is at a very important crossroads right now as it looks as though the long-term upwards trend is under serious threat. The first reason for this is that at the time of writing, the long-term bullish trend line is being seriously threatened. The second reason is that we are flipping support into resistance at decreasing levels, most recently just earlier this morning at 1.6812.
As the situation is in the balance it is proper not to have any bias and just to be prepared to trade equally with whatever happens next. There is crucial support below the trend line at 1.6738, which is fairly confluent with the key psychological level of 1.6750.
Above us I would not yet be prepared to take a short off the new flipped resistance level at 1.6812, but I would in coming days.
The bullish trend line itself can also be used as a significant level.
As there is no high-impact news today the pair is fairly likely to respect technical levels, so there could be a good opportunity today.
I disagree with my colleague Christopher Lewis’ assessment of continuing bullishness until the 1.6500 level is broken to the downside. I think that is going to come far too late relatively speaking, although his approach could be profitable over the long-term.
There are no important news releases scheduled today for either the GBP or the USD.