GBP/USD Signals Update
Yesterday’s signals were not triggered as the price never reached either 1.5434 or 1.5700.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be made before 5pm London time.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5434.
Place the stop loss 1 pip below the local swing low.
Move 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 1.5500 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 1.5700.
Place 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 price reaches 1.5500 and leave the remainder of the position to ride.
GBP/USD Analysis
I forecast yesterday that there was a resistant zone from around 1.5650 stretching up to 1.5700 which would probably be hard to break. This is exactly what happened, with the price remaining within a fairly narrow bullish channel but unable to penetrate above 1.5650.
We are unlikely to get to any significant levels before the FOMC releases after London closes tonight, with the possible exception of 1.5700 which could be a good opportunity to be positioned short. However if there is a long USD scenario, the GBP will probably not be the best currency to match that trade.
Otherwise, the channel may hold all the way up to the FOMC.
Concerning the GBP, there will be releases of Average Earnings Index, Claimant Count Change and the MPC Official Bank Rate Votes at 9:30am London time. Later, the Governor of the Bank of England will be speaking at 6:45pm. Regarding the USD, there will be releases of the FOMC Statement, Economic Projections, the Federal Funds Rate and a Press Conference commencing at 7pm London time.