GBP/USD Signals Update
Last Thursday’s signals expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5164.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 1.5240 and leave the remainder of the position to ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5402.
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.
Remove 50% of the position as profit when the price reaches 1.5400 and leave the remainder of the position to ride.
GBP/USD Analysis
Mondays are usually fairly quiet but today we have some news on both sides of this pair so there might be more movement today that usual.
This pair is not really in either a big downwards or upwards trend, although the trend of the past few days has definitely downwards. In fact the GBP is relatively strong and the crucial variable is the USD. If the USD gives up its strength and begins to weaken, this pair would probably become the best USD pair to be long of. This issue will probably not become clearer until the end of this week.
Meanwhile, it is possible to trade bounces off both support and resistance. There is probably minor support at 1.5275 so if the first news is reasonably good for the USD the price will probably rise during the first half of the London session.
Regarding the GBP, there will be U.K. Manufacturing PMI data released at 9:30am London time. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.