GBP/USD Signals Update
Yesterday’s signals may have been triggered following the bearish candle rejecting the identified resistance level at 1.3268. Any such trade looks OK for now and would still be open and in profit.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken 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 1.3162 or 1.3082.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.3289 and 1.3301.
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
I wrote yesterday that the area at 1.3250 might provide stronger resistance as it’s a big number. There are the first signs of a bearish turnaround and it is not a surprise that it may have happened in this area topped at 1.3268. However, looking at the chart we have to say that the rhythm of the bulls has not been truly interrupted yet, so there is room for caution, but we have had two pushes down from the 1.3260 with a little more than average volatility. In any case, it looks as if a move down when London opens would be likely to produce a fall all the way to 1.3180 and possibly the key support level of 1.3162.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Core Durable Goods Orders and Unemployment Claims data at 1:30pm London time.