GBP/USD Signal Update
Last Thursday’s signals were not triggered as there was no bullish price action at 1.3212 and the level at 1.2272 was not reached until after the end of the session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may be entered from 1pm and 5pm London time today only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2212.
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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2312.
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 last Thursday that a move down that day was the more likely outcome and so it proved to be. The British Pound has recently been one of the more bearish currencies against the U.S. Dollar, which is a turnaround from recent weeks where it had stood out showing some strength.
The trend is bearish but we are approaching some key lows and are not far away from all-time lows so there could be long-term buyers stepping in.
The resistance at 1.2312 looks very attractive to short.
There is nothing due today regarding the GBP, it is a public holiday in the U.K. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.