GBP/USD Signals Update
Last Thursday’s signal was not triggered and expired.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be made before 5pm London time only.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the first test of 1.5200.
Put the stop loss 1 pip above the local swing high.
Move 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 remainder of the position to run.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the first test of 1.4950.
Put the stop loss 1 pip below the local swing low.
Move 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 wrote last Thursday that the sharp move down in this pair has called recent GBP bullishness into question. Now that the pair has retreated almost all the way to its recent base at around 1.5000, I cannot see the GBP as a strong currency any more. The USD is the only truly strong currency, but there are weaker counterparties to trade against it than the GBP. This is why I do not see this as a very attractive pair to trade right now.
There are no high-impact events scheduled today for either the GBP or the USD today. Therefore it will probably be a quiet day for this pair.