GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bearish price action when the price reached 1.5380.
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 1.5381.
Put 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 trade is 25 pips in profit and leave the remainder of the position to run.
Short Trade 1
Short entry if the price is below 1.5460 at 9am London time.
Put 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 25 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
There was a strong rise in this pair yesterday, as there was with just about everything against the USD. The price cut through the anticipated resistance at 1.5380 like a knife through butter. This level should now flip to become potential support.
At the time of writing, the price is being held at an interesting point: the confluence of anticipated resistance at 1.5487 and the second touch formation of a really obvious bearish trend line connecting some major recent swing highs. If the price cannot break through here and falls following the London open, then a retrace back to at least 1.5400 becomes probable today.
I do not see good obvious long entry points before 1.5381.
There are no high-impact releases due today concerning the GBP. Regarding the USD, there will be releases of CPI and Unemployment Claims data at 1:30pm London time, followed by the Philly Fed Manufacturing Index at 3pm.