GBP/USD Signals Update
Yesterday’s signals gave a losing short trade off a break of a bearish engulfing candle rejecting the resistance at 1.5065.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5065.
* 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.
Long Trade 2
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5000.
* 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.
Long Trade 3
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4971.
* 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 1.5154.
* 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.
Short Trade 2
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5248.
* 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
I wrote yesterday that “this pair is now at an interesting crossroads: the 1.50 level is very psychologically significant so the area the price is in at the moment could be extremely pivotal, all the way down to 1.4970. Overall the picture looks bearish but it would not be surprising if buyers stepped in close to 1.5000 or just below there, especially if there will be good news for the GBP or bad news for the USD.”
This scenario is exactly what played out yesterday as buyers stepped in right at the key 1.5000 level and we broke up past the previous resistance at 1.5065. This now looks to have flipped to support, with support also probably present at a retest of 1.5000.
It is hard to say what will happen next.
Regarding the GBP, at 9am London time the Governor of the Bank of England will be speaking and half an hour later there will be a release of Manufacturing PMI data. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm.