GBP/USD Signal Update
Last Thursday’s signals were not triggered as none of the key levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Long entry following a convincing bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2104.
Put 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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2308.
Put 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
The pair continues to fall, and is in the middle of both long and short-term bearish trends which are strong. However, the pace of the decline is slowing down, and a recent low was made around the round number of 1.2100 at which there was a spurt of strong buying. If 1.2100 is tested again, it is going to be interesting to see what happens. Of course, the level at 1.2000 can be expected to be much more significant, if it is reached.
There is minor resistance at 1.2250, but the next real key level is around the round number at 1.2300.
I still maintain a bearish bias.
Regarding the GBP, there will be a release of CPI data at 9:30am London time. Concerning the USD, there will be a release of CPI data at 1:30pm.