GBP/USD Signals Update
Yesterday’s Short Trade 1 signal was triggered off a touch of 1.6142, took 50% of profit at 1.6100 and the remainder was stopped out at breakeven. So overall it was a break even trade.
Today’s GBP/USD Signals
Short Trade 1
Short entry following the first strong lower high on a shorter time frame after the first touch of 1.6233.
Put a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.6187.
Take off 50% of the position as profit at 1.6187, and then leave the rest of the position to run.
Short Trade 2
Short entry following bearish price action on the H1 time frame after the first touch of 1.6250.
Put a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.6200.
Take off 50% of the position as profit at 1.6200, and then leave the rest of the position to run.
GBP/USD Analysis
Yesterday we remained stuck within the areas of support and resistance that I identified at 1.6142 and 1.6068. The support held which is a bullish sign, and this bullishness will be confirmed if we can now break properly above 1.6142. As both of these levels are somewhat used and as the long-term trend is bearish, I prefer to wait for a pull back to the 1.6233 area before looking to go short. My colleague Christopher Lewis prefers to wait for 1.6250.
There are no high-impact data releases scheduled today concerning the USD. There are Inflation Report Hearings concerning the GBP at 2:45pm London time. Therefore it is likely to be quiet until after New York opens.