GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bullish price action at 1.4175.
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 1.4057.
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 1.4200.
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 “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”. The price actually briefly held at 1.4200 but was able to break down below that and slice through 1.4175 without much difficulty. The upshot of that is that we now have probable resistance at 1.4200 and nothing below the price as at the time of writing until 1.4057.
The outlook for this pair is now more bearish than it was 24 hours ago, although we can expect some volatility around the key U.K. announcements due soon.
Regarding the GBP, there will be a release of the Bank of England’s Monetary Policy Summary and the Official Bank Rate & Votes at Noon London time. Concerning the USD, there will be releases of CPI and Unemployment Claims data at 1:30pm.