GBP/USD Signals Update
Yesterday’s signals were not triggered.
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
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4436.
Put 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.
Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4648 or 1.4581.
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 run.
GBP/USD Analysis
This pair is dominated by the unusual political instability afflicting the U.K. right now over the forthcoming referendum on E.U. membership, which will be conducted on 23rd June. New polls have been released showing the Leave vote pulling ahead slightly, sending pro-E.U. politicians and business leaders – who dominate elite opinion – into something of a panic. Nevertheless online betting companies are still offering much better odds on Remain prevailing over Leave. It is possible to get a payoff of more than 3:1 on Leave prevailing, so it seems the odds on Remain prevailing are still high with the polls being disbelieved. It is true that British opinion pollsters have a track record in recent years of getting some crucial events very wrong, such as the last General Election.
All this instability is affecting the price of this pair which has become rather wild this week, with a huge spike occurring during this morning’s Asian session for no particular reason and support and resistance levels are coming to mean little.
For these reasons it is probably a good idea to stay away from trading this pair for now.
If you want to take an informed gamble on the Referendum, buying a cheap price and holding could pay off if Remain prevails.
There is nothing due today concerning either the GBP or the USD.