GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bearish price action when the price reached 1.3328.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3285 or 1.3235.
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 touch of 1.3375.
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
There was an important development yesterday which occurred when the price broke out of the symmetrical short-term bearish channel, which can still be seen in the hourly chart below. The price also printed a new flipped support level at 1.3285. Overall, the situation looks more bullish, although the key resistance level overhead at 1.3375 is likely to be strong – or at least, if and when the price reaches it, it will be a more severe test for bulls to overcome.
There is still a long-term downwards trend with the price below the 1.3500 area but I think once that is overcome, you have to say the long-term bearishness is over. The price has not made a new low for more than 2 months.
Concerning the GBP, there will be a release of CPI data at 9:30am London time. There is nothing due regarding the USD.