GBP/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.2700.
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 1.2620 or 1.2570.
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 1.2738.
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
I wrote yesterday that if the price could remain above 1.2700, it could start to look more decisively bullish. The price did pop above that level for a few hours, but is now back below that resistance, so the overall picture remains somewhat bullish but not strongly so.
The support at 1.2620 still looks like a very attractive level, if the price should return there. Below that there is a bullish Quasimodo formation providing support at 1.2570.
Regarding the GBP, there will be releases of the Average Earnings Index and Claimant Count Change at 9:30am London time. Concerning the USD, there will be releases of Retail Sales and PPI data at 1:30pm, followed later by Crude Oil Inventories at 3:30pm. Finally, we will get the FOMC Statement, Economic Projections and Federal Funds Rate at 7pm.