GBP/USD Signals Update
Yesterday’s signals might have produced a profitable short trade off the rejection of resistance at 1.4545 for 20 pips. The trade would still be open but I am very unsure as to the next short-term direction of the price.
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
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4316.
* 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.
* Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4650.
* 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.
* 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 USD is weak, and the GBP is also weak but less so. This means that although there is a long-term downwards trend, the price keeps getting supported when it falls. It will probably fall eventually but it is hard to say when. It is true that the price is being held more or less by 1.4545 so it may fall from here, but I am not confident about that.
I expect a more likely scenario is that this pair will chop around so trades off key support or resistance levels held for the short-term could be the way to go for now.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. The Chair of the Federal Reserve will be testifying before Congress at 3pm.