GBP/USD Signal Update
Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 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 1.2388 or 1.2364.
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
Yesterday saw a strong rise to a level very close to the nearest major resistance at 1.2532, and the price has sold off from here and is falling again.
I would not pay much attention to any of the trend lines shown in the chart below, focusing instead on the horizontal price levels which are very well defined, especially 1.2532. A break up above there would be a bullish sign.
This pair is ranging, with a small bullish bias.
Regarding the GBP, there will be a release of Bank Stress Test results at 7am London time. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm, followed later by Crude Oil Inventories at 3:30pm.