GBP/USD Signals Update
Yesterday’s signals may have produced a losing long trade upon the bullish break of an inside candle following the first touch of the anticipated support at 1.5244.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken 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 1.5078.
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.
Take off 50% of the position as profit when the trade is 25 pips in profit 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 1.5380.
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.
Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
GBP/USD Analysis
The pair fell sharply yesterday and then paused at my anticipated support of 1.5244, bouncing up slightly, but then fell again. The eventual bullish reversal came lower, at the round number of 1.5200. This rubs out the level at 1.5244 and leaves us with no very obvious flipped support level below. Support could come in anywhere between 1.5200 and 1.5078 if the price falls down there now.
The picture overall is bearish, the pound is currently one of the weaker currencies. The resistance at 1.5380 looks quite strong so the best potential scenario for today could be positive GBP news causing a spike up there, followed by another fall back down to 1.5200. This could be a great short trade.
Concerning the GBP, there will be releases of Claimant Count Change and Average Earnings Index data at 9:30am London time. Regarding the USD, there will be releases of Retail Sales and PPI data at 1:30pm.