GBP/USD Signals Update
Yesterday’s signal was not triggered and expired as the price never hit 1.6168.
Today’s GBP/USD Signals
Risk 0.75%
Entries should only be made between 8pm London time and 5pm New York time.
Short Trade
Go short following bearish price action on the H1 time frame after a first touch of 1.6168.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the trade is 40 pips in profit.
Take off 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.
Long Trade
Go long following bearish price action on the H1 time frame after a first touch of 1.5900.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even when the trade is 40 pips in profit.
Remove 50% 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
The USD continued to fall yesterday and this pair was no exception to that. However this up move stalled and was reversed to some extent during today’s Tokyo session. In this pair, that was expressed by what looks to be the printing of new flipped support to resistance at 1.6112, although this does look to be relatively weak. However it may be a bearish sign suggesting the market is expecting a move down towards 1.5900. This level is too new for my use, so for now I am sticking with the widely-spaced levels at 1.5900 and 1.6168. It is likely that 1.6112 will hold before the FOMC statement this evening, but there may not be much direction before then so today’s signals are only valid for the period following that event.
There are no high-impact data releases concerning either the GBP or the USD scheduled for today’s London session. Later, at 7pm London time, there will be a release of the U.S. FOMC Meeting Minutes which is likely to affect the USD. It might be a quiet day until then.