GBP/USD Signal Update
Yesterday’s signal was not triggered as the price never reached 1.7048.
Today’s GBP/USD Signals
• Risk 0.75%.
• Entries must be made between 8am and 5pm London time today.
Long Trade 1
• Long entry following bullish price action on the H1 time frame after the first touch of 1.7048.
• Put a stop loss 1 pip below the local swing low.
• Adjust the stop loss to break even when the price reaches 1.7090.
• Remove 75% of the position as profit at 1.7090 and leave the remainder of the position to ride.
GBP/USD Analysis
I wrote yesterday that we were likely in the short-term to see a fall down to the area around 1.7050 and this is in fact what happened, although we have not got there quite yet.
The recent price action has been very suggestive of a “topping out”, the next question will be whether the area around 1.7050 holds and produces a resumed bullish move, or whether it may just pause or cut through there and continue downwards.
The answers to these questions are likely to be found at least partially today as there are several high impact news releases due today concerning both the GBP and the USD. However it might be that there are no big surprises and all we get is some volatility. Day traders should be particularly careful today.
Volatility spikes down to 1.7048 or the trend line below it might provide good long opportunities for skilled day traders. A more conservative strategy as always is to wait for reversals on the H1 chart at these key levels, especially at 1.7048.
At 9:30am London time there will be a release of UK CPI data, then the Governor of the Bank of England will be speaking at a Parliamentary Committee at 10am. Later at 1:30pm there will be a release of US Retail Sales and Core Retail Sales data, and then at 3pm the Chair of the Fed will be testifying. Therefore today is likely to be an active day for this pair.