GBP/USD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 1.2450.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2443 or 1.2355.
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 1.2532.
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
This pair is one of the slower-moving pairs, and has been more stable amidst the recent strong market moves than most other instruments.
The support identified at 1.2450 did not hold yesterday, but has come into play now at a slightly lower level as we have a bullish Quasimodo support forming there, although it is not as symmetrical in terms of the time factor as I would prefer.
The resistance at 1.2532 also looks good and clearly defined.
Overall, it’s a fairly choppy and ranging picture.
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 PPI data at 1:30pm, followed by Crude Oil Inventories later at 3:30pm.