GBP/USD Signals Update
There are no outstanding signals.
Today’s GBP/USD Signals
Risk 0.75%
Trades must be entered before 5pm New York time only.
Short Trade 1
Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.5075.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 30 pips in profit.
Remove 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 have been ignoring this pair for the past two weeks or so because the USD was becoming less bullish and the GBP was becoming more bullish, meaning the pair was mostly chopping around in a range. Another factor was that this pair often does not respect support and resistance very much, and when there are really no clear and obvious levels it is very dangerous to trade. That was certainly the case lately, with the chart being a complete mess in this respect.
Now that the USD has strengthened again, it is time to take another look at this pair, but to note that the GBP is actually not a relatively weak currency these days, so is not an ideal short trade against the USD.
Technically, there is no really clear support below until we get way down to the area around 1.4850. Above, the area around 1.5075 was previously acting as clear support over several recent days, so we could expect a failed test of that level from the other side to result in some kind of move down. It will help if the USD is also getting support from key levels at the same time on EUR/USD (likely) and USD/JPY (also possible).
There are no high-impact data releases scheduled today directly concerning the USD or the GBP, therefore it is quite likely to be a relatively quiet day for this pair.