GBP/USD Signals Update
Yesterday’s signal expired without being triggered. The price did not hit 1.6067 until after the London session ended.
Today’s GBP/USD Signals
Risk 0.75%
Entries should only be made between 8am and 5pm London time.
Short Trade 1
Short entry following bearish price action on the H1 time frame after a first touch of 1.6168.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even when the trade is 40 pips in profit.
Remove 75% of the position as profit when the trade is 40 pips in profit and leave the remainder of the position to ride ensuring there is no risk left in the trade.
Short Trade 2
Short entry following bearish price action on the H1 time frame after a first touch of 1.6282.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even when the trade is 40 pips in profit.
Remove 75% of the position as profit when the trade is 40 pips in profit and leave the remainder of the position to ride ensuring there is no risk left in the trade.
GBP/USD Analysis
I predicted yesterday that it would be a quiet London session and I was not correct. We saw instead a strong counter-trend move against the USD and this pair saw a very steep upwards move that broke through the expected resistance level at 1.6067, although this was after the London session. It would not be surprising if this counter-trend move continues all week and is particularly strong in the GBP.
In spite of the strong upwards move I will still look for short trades off 1.6168. We are very unlikely to reach 1.6282 today. There are no obvious flipped supportive levels below us before 1.5900.
There are no high-impact data releases scheduled for today which are likely to directly affect either the USD. However there will be a release of U.K. Manufacturing Production data at 9:30am London time.