GBP/USD Signals Update
Yesterday’s signals were not triggered as the price never reached either 1.5674 or 1.5434.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be made between 8am and 5pm London time today.
Long Trade 1
- Long entry 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.
- Take off 50% of the position as profit when the price reaches 1.5500 and leave the remainder of the position to ride.
Short Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5674.
- 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.
- Take off 50% of the position as profit when the price reaches 1.5560 and leave the remainder of the position to ride.
GBP/USD Analysis
Like its sister the EUR/USD pair, this pair did little yesterday. The shine has come off the GBP recently with some poor U.K. economic data released last week, although overall the GBP is probably holding up better than anything else against the USD. Having said that, note that we have just about formed a bearish channel in the chart below over the past couple of weeks – it just needs 1 more touch on the upper trend line.
If the U.K. data this morning is positive that could lift the pair, but I suspect that we are going to have to wait until the FOMC news release tomorrow night before hitting either of the closest key support/resistance levels, which remain unchanged.
Regarding the GBP, at 9:30am London time there will be a release of Manufacturing Production data. Later at 1:30pm there will be a release of U.S. Trade Balance data.