GBP/USD Signal Update
Yesterday’s signals were not triggered as none of the key levels were reached.
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 1.2212, the supportive trend line shown in the chart below which is currently sitting at about 1.2171, or 1.2148.
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
The consolidation between 1.2300 and 1.2100 now moves into its third week, despite all the drama elsewhere in the Forex market which took place yesterday. This tells you something about this pair. I wrote yesterday that the day’s best opportunities in the Forex market were probably going to be elsewhere and I was right about that.
The U.S. Dollar got hammered yesterday and the GBP benefitted very slightly from this. A new flipped resistance to support level was printed at 1.2211 although it does not look to be extremely strong.
Again, it is hard to judge what might happen next, and there is major news due later today for both sides of this pair. The British data will probably be more influential in determining what happens.
Regarding the GBP, there will be a release of Construction PMI data at 9:30am London time. Concerning the USD, there will be a release of ADP Non-Farm Employment Change data at 12:15pm followed by Crude Oil Inventories at 2:30pm and the FOMC Statement and Federal Funds Rate at 6pm.