GBP/USD Signal Update
Yesterday’s signal was not triggered and expired.
Today’s GBP/USD Signal
Risk 0.75%.
Entries can only be made from 8am to 5pm London time today.
Long Trade 1
Long entry following bullish price action on the H1 time frame after the first touch of 1.6914.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.6990.
Take off 75% of the position as profit at 1.6990 and leave the remainder of the position to run.
GBP/USD Analysis
Yesterday the market was surprised by the Bank of England which led to this pair falling, although it did not come very close to reaching the supportive area at 1.6914. At the time of writing we are falling again and are only about 35 pips away.
Yesterday we also saw the area around 1.7000 flip from being supportive to resistance, but this level is a little too muddied for me to want to use right now.
The only clear opportunity that really stands out would be a long trade off the likely support level at 1.6914. This horizontal level is also quite confluent today with the very old, long-term bullish trend line. It has been broken, but has seemed to re-establish itself after holding both as support and as resistance.
My colleague Christopher Lewis is also looking to buy this pair.
We might not reach 1.6914 this morning, but some positive news for the USD shortly after New York opens later might well achieve this.
There are no high-impact data releases scheduled for today that are expected to directly affect the GBP. Later at 1:30pm London time there will be a release of US Core Durable Goods Orders and Final GDP data, which may affect the USD. It might be a quiet morning for this pair.