GBP/USD Signals Update
Yesterday’s signals expired without being triggered as the price never reached either 1.5347 or 1.5482.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Long Trade 1
Long entry after bullish price action on the H1 time frame immediately following the next touch of the nearest bullish trend line at around 1.5370.
Put the stop loss 1 pip below the local swing low.
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.
Short Trade 1
Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.5550.
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
During the late Asian session this morning, the price has been breaking above the anticipated resistance just short of the key psychological level of 1.5500. There is additional key resistance ahead at 1.5550. The price is well established in a strongly bullish channel, and the GBP is the strongest global currency right now over the medium-term, while the USD has been the weakest currency overnight following yesterday’s remarks from the U.S. Federal Reserve. Therefore a further bullish move up is quite possible even without a pull-back to what is likely to be support at the lower channel trend line.
The area above can be expected to be quite resistant as the price spent some considerable time here recently. The resistance levels below 1.5550 must be discounted as the price is holding above them at the time of writing, although they are still marked in red within the chart below.
The Governor of the Bank of England will be speaking at 10am London time, and his remarks may cause some volatility in this pair. Regarding the USD, at 3pm London time there will be a release of U.S. New Home Sales data and the Chair of the Federal Reserve will begin her testimony before the House Financial Services Committee.