GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.4420 or 1.4462.
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 1.4420.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4520, or 1.4571.
Put 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 ride.
GBP/USD Analysis
The USD weakened yesterday, not by a great deal, but this pair made a strong bullish move, cutting up past probable resistance levels and most likely building new support. The chart below shows a fairly choppy picture over the past week or so. Although there is a long-term downwards trend, it is now very much in question, and if the price becomes established above 1.4500.
Concerning the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be releases of CPI and Building Permits data at 1:30pm.