GBP/USD Signal Update
Yesterday’s signal to go long at 1.6738 was triggered. At the time of writing the trade is about 10 pips in loss after we almost hit the stop loss yesterday. I do not see any bullish momentum here so I would exit this trade immediately.
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 following bullish price action upon the first touch of 1.6623.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.6684.
Remove 75% of the position as profit at 1.6684 and leave the remainder of the position to run.
Short Trade 1
Short entry following bearish price action upon the first touch of 1.6738.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.6710.
Remove 25% of the position as profit at 1.6684 and leave the remainder of the position to run.
Short Trade 2
Short entry upon the first touch of 1.6812.
Place the stop loss at 1.6862.
Move the stop loss to break even when the price reaches 1.6775.
Take off 50% of the position as profit at 1.6750 and leave the remainder of the position to ride.
GBP/USD Analysis
I wrote yesterday that the long-term upwards trend was under serious threat as the bullish trend line looked to be breaking down. This break down did occur yesterday as the GDP fell quite strongly and we ended with a daily close well below this trend line.
We got a small bounce at around 1.6740 as hoped but it was small and once the New York session got going this was easily taken out as the fall resumed.
I have switched my bias to bearish and will look for wider profits on short trades than long trades.
We have potential flipped support now at 1.6738 above us. Beyond that there is the 1.6812 level which looks good. We approached too close yesterday to the level immediately below us at 1.6684 to think about going long there yet, but there is a level below that at 1.6623.
There are no important news releases scheduled today for the GBP. Concerning the USD, there are Preliminary GDP and Unemployment Claims at 1:30pm London time. Later at 3pm there will be a release of Pending Homes Sales data.