GBP/USD Signals Update
Yesterday’s signal expired without being triggered as the price did not quite reach 1.5789.
Today’s GBP/USD Signals
Risk 0.75%
Trades may only be taken between 8am and 5pm London time.
Short Trade 1
Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.5789.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remove of the position to run.
Long Trade 1
Long entry after bullish price action on the H1 time frame immediately following the next touch of 1.5600.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 25% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
Yesterday saw a strong move up to a level just a few pips short of our anticipated resistance level of 1.5789, and the price has been falling steadily during the Asian session.
Yesterday’s move up created a bullish trend line below us. The price will eventually have to break past either 1.5789 or the trend line, and this will probably be crucial in determining the medium-term direction.
If we reach the trend line later today and bounce up off it, this could be a good chance for a long trade, but the round number below it at 1.5600 looks like more attractive support.
There is a lot of news due today so the action could be wild.
There are high-impact data releases scheduled today directly concerning both the USD and the GBP. Regarding the latter, there will be a release of U.K. Average Earnings, Claimant Count Change, and MPC Rate Votes data. Later at 1:30pm there will be a release of U.S. CPI data followed later at 7pm by the FOMC Statement and Projections and announcement of the Federal Funds rate. The FOMC even is likely to be crucial to the next important directional development of this pair. It will probably be a very volatile day for this pair.