GBP/USD Signals Update
No signal was given yesterday.
Today’s GBP/USD Signals
Short Trade 1
Go short following bearish price action on the H1 time frame after the first touch of 1.6142.
Place a stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the price reaches 1.6100.
Remove 50% of the position as profit at 1.6100, and then leave the rest of the position to ride.
Short Trade 2
Go short following bearish price action on the H1 time frame after the first touch of 1.6250.
Place a stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the price reaches 1.6200.
Remove 50% of the position as profit at 1.6200, and then leave the rest of the position to ride.
GBP/USD Analysis
Yesterday saw another fall, although it had more to do with USD strength that GBP weakness as the GBP did find support against other currencies. The market is still spooked by the prospect of Scottish independence, though there is a sense that the status quo will begin to mount a fierce fight back. Additionally, history teaches us that there can be fairly sharp rebounds after such sudden falls.
This morning we seem to have found some support at the expected support level of 1.6067. If this level survives today, then in the absence of further alarming opinion polls, we may start to consolidate or rise. It might be that the first test will be at the next approach of 1.6142 which is confluent with today’s Daily Pivot. If we can break past that level, it will be a bullish sign. If the level holds, it will be a good place at which to look for a short trade. It was expected to be support so as it broke it may now have flipped to become resistance.
There are no high-impact data releases scheduled today concerning the USD. Regarding the GBP, there will be U.K. Manufacturing Production data at 9:30am London time. Later at 11:45am, the Governor of the Bank of England will be speaking. There should be most activity in this pair today at around the time of his speech.