GBP/USD Signal Update
Yesterday’s signals were not triggered as 1.2308 did not give any bearish price action until after the London Close.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
* Go long following a convincing bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2250 or 1.2221.
* Place 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
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2308.
* Place 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 yesterday that we remain within something of a consolidation between 1.2300 and 1.2100. Although the price rose in quite a bullish style yesterday, the resistance at 1.2308 has held and so we have to say the consolidation continues, although a break up above the top of this range would not be a great surprise as there are two new support levels that have printed below that are likely to provide new buying opportunities.
There is still a long-term strongly bearish trend in force.
Regarding the GBP, there will be a release of Average Earnings Index and Claimant Count Change data at 9:30am London time. Concerning the USD, there will be a release of Building Permits data at 1:30pm, followed by Crude Oil Inventories at 3:30pm.