GBP/USD Signals Update
Yesterday’s signal was not triggered and expired because the price never reached 1.4892.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be made between 8am and 5pm London time only.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the first test of 1.4892.
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.
GBP/USD Analysis
I forecast yesterday that it was very unlikely that the price would reach 1.4892 before the close of the London session, and that forecast turned out to be correct. However there was a surprisingly strong move up yesterday, showing a strengthening of the GBP following its sudden and sharp fall over recent days against the USD.
The anticipated resistance at 1.4892 is somewhat less confluent with the 2 week old bearish trend line shown on the chart below, but we should still look to a reversal from that level as a good opportunity to set up a short trade. I would not look for a short off the trend line itself without the level actual being touched at least.
There are no high-impact events scheduled today concerning the GBP. Regarding the USD, at 12:30 London time there will be a release of Building Permits data.