GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no suitable price action at any of the key levels when they were hit.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4520 and 1.4462.
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 1.4694 or 1.4650.
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
Yesterday was a strange day as there was a sudden and very strong reversal of fortune for the U.S. Dollar that didn’t seem to have been triggered by anything at all. After rising very strongly and even briefly getting above 1.4750, this pair then fell very strongly, although it may have bottomed out in late Asian session trading at the key support level of 1.4520. These strong moves have invalidated key support and resistance levels, and suggested that new ones have been formed.
It can be dangerous to trade in such an unsettled environment so it might pay to be very careful. It looks as if 1.4520 could be excellent support, with not much in the way or resistance before 1.4600.
Concerning the GBP, there will be a release of Construction PMI data at 9:30am London time. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm followed by the ISM Non-Manufacturing PMI data at 3pm and Crude Oil Inventories at 3:30pm.