GBP/USD Signals Update
Last Thursday’s signals were not triggered as none of the key levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 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 or 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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.3267 and of 1.3300.
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
Following Friday’s sharp fall that occurred after the release of poor British economic data, the price has recovered somewhat after making a U-shaped bottom that is a little higher than the U-shaped bottom that was made a few days ago slightly above 1.3050.
This suggests there is buying pressure below at 1.3050. We also have a higher low. These are possible signs that the price is not ready to fall any further.
There is a nicely confluent zone of resistance above centred on 1.3300. We currently have two trend lines converging there and it has held the price over the past seven days.
There may be minor resistance around 1.3150.
A break up above 1.3300 would be a bullish sign.
The long-term trend is strongly bearish, so the sensible trade looks likely to be a short from the zone around 1.3300.
There is nothing due today concerning either the GBP or the USD.