GBP/USD Signals Update
Yesterday’s signals produced an excellent, profitable short trade off the pin bar rejection of the resistance identified at 1.4306. It looks like being a good idea to be prepared to take any remaining profit at 1.4200.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 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 1.4175.
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.
Remove 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 1.4322.
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.
Remove 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
The level at 1.4306 looked as if it was breaking, but the price fell sharply even though it had got about 20 pips beyond that level, forming a bearing pin bar early in the London session which set up a great short trade.
As I mentioned yesterday, the price 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 and the price can really go in either direction, so trading off key support and resistance levels in either direction is likely to be fruitful on this pair.
It currently looks as if the price is going to test 1.4200 again which is a key area for the price to bounce off, especially at 1.4175 slightly below.
There is nothing due today regarding the GBP. Concerning the USD, there will be releases of Retail Sales, Core Retail Sales and PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.