GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bearish price action between 1.4057 and 1.4017.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 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 1.4175.
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 run.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4306.
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 run.
GBP/USD Analysis
I wrote yesterday that “the break of the trend line does not look very clear, so it does not yet seem possible to use it to pick an entry.” I could hardly have been more wrong, as the chart below shows an excellent pin bar rejecting the broken trend line and launching a strong bullish move, as the price briefly hesitated with the inside candle just below the resistance identified under 1.4200 before breaking up past there quite decisively.
The pair looks much more bullish now, and the previous resistance now looks to have been flipped to probably clear support at 1.4175. Above there is still 1.4306 which could be good resistance.
Overall, a long-term chart shows this pair is ranging, and is right in the middle of its range over the past three months, so any weakness in the USD could still cause a good short to set up.
Regarding the GBP, there will be a release of CPI data at 9:30am London time. There is nothing due concerning the USD.