GBP/USD Signals Update
Yesterday’s signals expired without being triggered as there was no bearish price action at 1.5556.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today only.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5674.
- Put 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 1.5610 and leave the remainder of the position to run.
Short Trade 2
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5803.
- Put 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 1.5705 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 next touch of the broken bearish trend line currently sitting at around 1.5550.
- Put 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 1.5550 and leave the remainder of the position to run.
GBP/USD Analysis
This pair has suddenly become very interesting as it appears to be exhibiting a trend change from bearish to bullish. Yesterday’s comment from the Bank of England that the time was approaching for U.K. rates to rise caused the price to rise sharply and break out above the bearish trend line, which can now be expected to become support. If the resistance at 1.5674 is easily overcome soon, that will be a bullish sign and the price could then proceed to 1.5800.
Regarding the GBP, there will be a release of Average Earnings Index and Claimant Count Change data at 9:30am London time. Concerning the USD, there will be a release of PPI data at 1:30pm London time followed by the Fed Chair’s testimony before Congress at 3pm, which is likely to be very important.