GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bearish price action at the supportive trend line.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered from 8am to 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3050 and 1.3000.
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.
Short Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3150 or 1.3277.
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
Yesterday we saw the price break down through a supportive trend line with very bearish price action: double inside candles on the hourly chart with bearish wicks, and these were part of the second shoulder of a classic head and shoulders formation.
On the way down it looks as if we have created a new flipped level at 1.3150 which may now act as resistance.
There is a new steep bearish trend line but I would not pay much attention to it apart from using it to confirm the start of a bullish move once it has broken.
The long-term bearish trend remains intact and so there could be a good opportunity to go short if and when the price next reached 1.3150.
The price action at the moment just above 1.3050 suggests we have already reached support and will probably make some kind of upwards move.
Concerning the GBP, there will be a releases of Average Earnings Index, Claimant Count Change and Unemployment Rate data at 9:30am London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm.