GBP/USD Signals Update
Yesterday’s signals expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5100.
* 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.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4900.
* 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 price reaches 25 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
The price had been falling from resistance close to 1.5250 already before the FOMC announcement which initially created some volatility before strengthening the USD further and sending this pair down quite strongly. The GBP has been one of the weaker currencies lately so it did indeed move down nicely as expected in line with a strengthening USD.
We had a bounce up from a supportive area not far from 1.4900 although it is unclear whether that is going to follow through. At the time of writing a further fall down to at least 1.4900 looks quite possible.
The levels at 1.5000 and 1.5050 may also provide resistance.
Regarding the GBP, there will be a release of Retail Sales data at 9:30am London time. Concerning the USD, there will be a release of the Philly Fed Manufacturing Index and Unemployment Claim data at 1:30pm.