GBP/USD Signals Update
Yesterday’s signals expired without being triggered.
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 1.3078, 103050 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 1.3249 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
This pair is becoming compressed. It has broken an inner supportive trend line, which was a bearish sign, but it continues to make new highs, albeit in small steps, as well as new major lows.
A look at a higher time frame chart such as the daily shows that volatility is decreasing and the price may be settling into a more defined consolidation area. However it is exactly at times such as these that we need to be aware of the potential for breakout.
The long-term trend is still bearish and it feel as if another failed stab up to reach resistance starting at 1.3250 should lead to a more sustained move down, to at least 1.3078.
However a real break up above 1.3300 would suggest a continuation up to around 1.3500 or so..jpg "GBPUSD")
Concerning the GBP, there will be a release of Construction PMI data at 9:30am London time. There is nothing due regarding the USD.