GBP/USD Signals Update
Yesterday’s signals produced an excellent and profitable long trade following the bullish pin candle rejecting the identified support level at 1.3078. However it may have only produced 20 pips of profit due to the twisting price action after entry.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 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 1.3164, 1.3078, 1.3050 or 1.3000.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.3260 and 1.3300.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 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
The FOMC pushed this pair to break out of the channel and up past resistance at 1.3164 until the price just about reached 1.3250, from where it has fallen again during the Asian session. However, so far the resistance turned presumed support at 1.3164 has held and if it continues to hold this will be a sign of another trip upwards, probably to finally touch the resistant area that should now begin at about 1.3260. The higher the price goes up to 1.3300 after another bullish thrust, the more confidence I will have in any bearish reversal from there to set up a good short trade.
There is a congested support levels below beginning at 1.3078 but even before that it might be hard for price to move downwards.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.