GBP/USD Signals Update
Yesterday’s signal was not triggered as the price closed below the 1.5900 level on the H1 chart before providing any kind of bullish price action.
Today’s GBP/USD Signals
Risk 0.75%
Trades must be taken before 5pm London time.
Short Trade
Go short following bearish price action on the H1 time frame immediately following the next touch of 1.6087.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
I forecasted yesterday that the level of 1.5900 would prove to be good support. Unfortunately being able to forecast only once per day makes things pretty inflexible, and as it turned out we did not get the bounce until we were some pips under that level. After that the move up was fairly strong,
There is local resistance above at 1.6020 and possibly stronger resistance at 1.6085.
There are high-impact news releases scheduled today that are likely to affect both the GBP and the USD. At 9:30am London time there will be a release of Manufacturing Production Data, followed by the U.K.’s Official Bank Rate and Asset Purchase Facility data at Noon. There will be a release of U.S. Unemployment Claims data at 1:30pm. Today this pair is likely to be very volatile, especially during the early part of the New York session.