GBP/USD Signals Update
Last Thursday’s signals were not triggered.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3017.
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 1.3101 or 1.3172.
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 last Thursday that “it is starting to look as if we finally have an end to the bullishness and the possible beginning of a major downwards movement, with the double top forming ending in a sharp drop, and now it looks as if the end of a head and shoulders style pattern might be forming, which would also have bearish implications.” This is exactly what happened, with first the rate cut and additional easing from the Bank of England driving down the Pound and then the better than expected NFP numbers boosting the USD.
However, we have in recent weeks seen long-term buying close to the psychologically key 1.3000 level and in fact last Friday we saw a sharp bounce when the price got there. Another drop to that area followed a double bottom could be a long trade opportunity.
The prevailing trend is of course bearish and the first opportunity to re-join that trend may come at a failure to rise above the round number at 1.3100.
There is nothing of high importance due today concerning either the GBP or the USD.