GBP/USD Signals Update
Last Thursday’s signals were not triggered as although the price did reach 1.5608, there was no bearish price action there.
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.
Remove 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 1.5541.
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
This pair is in a very clear technical situation. A strong double bottom was formed at 1.5541, and the second bounce was confluent with the broken bearish trend line that has been established for some time. This suggests an upwards move is due, but the price action shows a very strongly consolidating picture, and there is very strong resistance at 1.5789 that has held for quite a long while. That level was a significant weekly low that subsequently turned into support.
It all adds up to suggest that this pair is just going to chop around in this area over the next few days, so it is probably best avoided for the time being. The current price action does show a local triangle that might provide some kind of breakout direction an hour or so after today’s London open, for anyone determined to day trade this pair today.
There are no high-impact data releases scheduled today directly concerning either the USD or the GBP. It is likely to be a quiet day for this pair.