GBP/USD Signals Update
Yesterday’s signals produced a losing short trade following the bearish pin bar rejecting the anticipated resistance level at 1.3250.
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 1.3300/3290, 1.3268 or 1.3250.
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 touch of 1.3478.
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
Although I was expecting a move down from the 1.3250/1.3300 area was the more probable outcome, I did write yesterday that we had to be alert for a breakout, and that a real break up above 1.3300 would suggest a continuation up to around 1.3500 or so. This is what happened and there are now no clearly defined resistance levels before 1.3478.
However we have major news items for both currencies and in particular, the NFP USD cycle is beginning which will culminate with the actual numbers around the New York open on Friday. Right now the USD is weak and sentiment bearish so the GBP is benefitting from that. The NFP numbers could change all that and send this pair falling again.
Note that the ascending cylinder trend lines remain intact
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Concerning the GBP, there will be a release of Services PMI data at 9:30am London time. Regarding the USD, there will be a release of ADP Non-Farm Employment data at 1:15pm, followed by ISM Non-Manufacturing PMI at 3pm and then Crude Oil Inventories at 3:30pm.