GBP/USD Signals Update
Yesterday’s signals were not triggered, although the price did make a low only 5 pips away from the support level at 1.3050.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Protect any open trade by 6:30pm London time.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3078, 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 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
I wrote yesterday that a bullish breakout from the flag after another trend line tap was the more likely scenario and this was exactly how it played out, with the price tapping the lower trend line and simultaneously testing both of the recent key U-shaped swing lows before springing up.
The picture gets more crowded now, as we have new resistance at 1.3165, although I do not want to look for shorts off this level as I do not see a lot of room of move further downwards right now.
It is most likely the price will chop around in this area until the key releases due later, either one of which could push the pair anywhere. However I see the line of least resistance as upwards so another test of the 1.3267 area looks probable.
Concerning the GBP, there will be a release of Preliminary GDP data at 9:30am London time. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm followed by Crude Oil Inventories at 3:30pm, ending with the FOMC Statement and Federal Funds Rate at 7pm.