GBP/USD Signal Update
Yesterday’s signals were not triggered as the bullish action took place below the support level identified at 1.2595 yesterday, but above the level at 1.2559.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.2595 and 1.2559.
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 Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2683.
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.
GBP/USD Analysis
I wrote yesterday that the pair would probably be halted at about 1.2600 and although the price did penetrate for some pips below that level, it was an area that ultimately held. However, now after the bullish pull back, it appears that the bearish move may be reasserting itself with selling off 1.2650. I prefer to now treat the supportive levels below as boundaries of a supportive zone. It seems that this pair is moving from bullish to ranging over a longer term, although it would not be technically surprising if the bullishness was to return.
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.