GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bullish price action when the price reached either 1.3285 or 1.3235.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3162.
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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3232 or 1.3285.
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
This pair was actually looking quite bullish but yesterday’s strong downwards move has put an end to that for the time being. The long-term downwards trend has reasserted itself.
It looks as though the support level at 1.3162 is acting as an effective floor for now. Today will probably be dominated more by the Pound than by the USD.
The long-term downwards trend remains in force.
It is likely that the former support levels above have flipped to resistance but as the price fell through them cleanly we have no clues about that yet.
Concerning the GBP, there will be a release of Average Earnings Index and Claimant Count Change data at 9:30am London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm.