GBP/USD Signal Update
Yesterday’s signals produced a long trade following the bullish engulfing candle and the rejection of the support level identified at 1.2312. At the time of writing, this trade is slightly in profit, and it would probably be a good idea to tighten the stop.
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 1.2312 or 1.2272.
* Put the stop loss 1 pip below the local swing low.
* 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 Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2419 or 1.2454.
* 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 fell again yesterday, breaking down past a couple of closely bunched support levels but then finally bouncing up off the level at 1.2312 almost to the pip. At the time of writing the next short-term move looks uncertain, but a move back up to the 1.2400 seems a little more likely. This pair is starting to look much more bearish, and the support at 1.2312 is very key. A sustained break below there would seem to be a very bearish sign.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.