GBP/USD Signal Update
Yesterday’s signals were not triggered as none of the key levels were hit during the London session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2511 or 1.2425.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2570 or 1.2620.
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 ride.
GBP/USD Analysis
The price was mildly bullish until the FOMC release, which produced the anticipated rate hike, but more importantly, produced a forecast of higher rates than had been expected for 2017. This sent the USD rising everywhere, and even though the GBP has been one of the stronger currencies, the move downwards in this pair was meaningful but not huge. The price is already back at last week’s lows.
Two support levels were cleanly broken and look to have flipped to become likely resistance.
It looks as if the long-term ranging type action is continuing.
It cannot be said there is much of a trend here so trading opportunities are likely to be best taken over shorter time frames.
Regarding the GBP, there will be releases of Retail Sales data at 9:30am London time, followed by the Bank of England’s Monetary Policy Summary, Official Bank Rate & Votes at Noon. Concerning the USD, there will be releases of CPI, Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm.