GBP/USD Signal Update
Yesterday’s signals were not triggered as there was insufficiently bullish price action at 1.2212.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
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
Yesterday saw a strong fall, then a rise from a supportive area close to 1.2200. The interesting feature that stands out is that the GBP rebounded less strongly against the USD than other currencies did, particularly the Yen and the Euro. This suggests weakness in the GBP, and until that changes this pair is going to look like an attractive short trade when it reaches key resistance levels such as 1.2312.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories data at 4pm.