GBP/USD Signals Update
Yesterday’s signals were not triggered as there were hourly closes below 1.4087.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am until 5pm London time today.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.4087 and 1.4050.
* 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.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4000.
* 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 1.4250.
* 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
We had quite an unusual weekly open that was politically driven: the price opened with a fairly strong gap down, rose slightly and then fell like a stone to make a new 6 year low.
We got a bounce from a level that was very close to key support I had identified at 1.4050. I now see the area between 1.4087 and 1.4050 as a wide zone of support, and there should also be additional support below that at the key round number of 1.4000.
Concerning the GBP, there will be Inflation Report Hearings at 10am London time. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm.