GBP/USD Signals Update
Yesterday’s signals might have produced a losing trade following the bearish rejection of the zone at 1.4331 right after the London open, although there was a warning about the trend line possibly being supportive, which is exactly what happened.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken only between 8am and 5pm London time today.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.4331 and 1.4322.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trade 2
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4284.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 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 1.4546.
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
There was a strong bullish move breaking up past the zone just above 1.4322 which initially was resistant. However the zone was then convincingly broken using the trend line as an accelerator. This pair looks much more bullish now, although it is still well within a long-term consolidation zone, so overall the outlook is neutral.
Regarding the GBP, there will be a release of Average Earnings Index and Claimant Count Change data at 9:30am London time. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm.