GBP/USD Signals Update
Yesterday’s signals were not triggered as the price never rose about 1.4925.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4878 especially if the rejection is confluent with a touch of the short-term bearish trend line shown in the chart below.
* 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 1.4950.
* 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 3
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5000.
* 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.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4802.
* 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 price reaches 25 pips in profit and leave the remainder of the position to ride.
GBP/USD Analysis
I wrote yesterday that a bearish breakdown below the previous support at 1.4878 was likely and this was exactly what happened, with the price of this currency pair falling to new multi-month lows. However it bottomed out at around the New York close very near the anticipated next support level
of 1.4802 and has been rising during the Asian session. It seems likely that the early London session is going to see a retest of 1.4878 which is now quite likely to prove resistant.
Concerning the GBP, there will be a release of Current Account data at 9:30am London time. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm.