GBP/USD Signals Update
Yesterday’s signals produced a losing short trade from the bearish break of the pin candle rejecting the anticipated resistance at 1.4445 shortly after the London open.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered 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 1.4316.
* 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.
* 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 1.4205.
* 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.
* 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 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4545.
* 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.
* 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 1.4650.
* 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.
* 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
It has seemed in recent days as if this pair’s strong downwards trend was resuming, but there is just too much weakness in the USD for that to really happen. Yesterday saw a sharp move down followed by an even sharper upwards rebound, mimicking the huge see-saw swing global equity
markets. The most interesting development is that the support/resistance level at 1.4445 has now been erased, it might still play a role but it does not look advisable to enter any trades off this line. This leaves us with strong resistance and support both above and below. I expect this pair is quite likely to move sideways for a while so any levels should be interesting places at which to look for trade entries.
Concerning the GBP, there will be a release of Manufacturing Production data at 9:30am London time. Regarding the USD, the Chair of the Federal Reserve will be testifying before Congress at 3pm, followed later by Crude Oil Inventories at 3:30pm.