By: DailyForex.com
GBP/USD Signal Update
Yesterday’s signal was not triggered as the price never reached 1.6914.
Today’s GBP/USD Signal
Risk 0.75%.
Entry may only be made between 8am and 5pm London time today.
Long Trade 1
Go long following bullish price action on the H1 time frame after the first touch of 1.7048.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.7095.
Take off 75% of the position as profit at 1.7095 and leave the remainder of the position to run.
GBP/USD Analysis
I was correct yesterday in not looking to short at the resistance zone I had identified from 1.7041 to 1.7062, but I was wrong that any upwards breakout past this zone would not happen during the day. We did get a breakout, exceeding 1.7100 at one point. I had thought a temporary pull back downwards was the likeliest short-term move.
The upwards move stalled last night just short of a couple of intersecting long-term upper channel trend lines. In fact, this was a near 6 year high, so it is a little difficult to pick good resistance levels up here! I do not see any good levels below 1.7400, although 1.7250 is likely to be a key psychological number. There is no reason why all other things being equal, the bullishness might not continue for at least a few more hundred pips.
Despite the channel trend lines I am not looking for any short trades, but will be seeking to go long at a pull back to the 1.7048 which has recently acted as a swing high twice before yesterday’s breakout. There is a good chance it will act as support now, but that will need to be confirmed by bullish price action if and when we get there.
At 9:30am London time there will be a release of UK Manufacturing PMI data that may affect the GBP. Later at 3pm London time there will be a release of ISM Manufacturing PMI data, which may affect the USD. Therefore it is quite likely the pair will continue to be active, as it was yesterday.