GBP/USD Signals Update
Yesterday’s signals expired without being triggered as the price never reached either 1.4950 or 1.5200.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the first test of 1.5200.
Place 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 remainder of the position to ride.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the first test of 1.4950.
Place 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.
Take off 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to ride.
GBP/USD Analysis
I still do not see this as an attractive pair to trade, as the GBP is one of the stronger currencies, and the USD is the strongest currency without any doubt at all.
Overnight, the price bounced off a broken bullish trend line, which seems to now be acting as mobile resistance. However as we have just made this touch, I would not be looking to go short again at another touch of it. The fact that we have moved down off it suggests that today might be a down day for this pair. However the area between 1.5000 and 1.4950 is likely to be supportive, so any fall might be short-lived.
There are no high-impact events scheduled today concerning the USD today. Regarding the GBP, the Governor of the Bank of England will be testifying before a minor Parliamentary Committee at 2:35pm London time.