GBP/USD Signal Update
Yesterday’s signals produced a losing short trade from the bearish pin candle rejecting the resistance level at 1.2270.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 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 1.2271 or 1.2212.
Place the stop loss 1 pip below the local swing low.
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 1.2388.
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 resistance level at 1.2270 was likely to hold if reached today, and I was wrong about that. However, I was correct to identify that this was the most bearish of all the USD pairs and so when the bearish trend reasserted itself, it should be more pronounced here, and this is exactly what we are seeing as the London session gets going today. If 1.2270 does not hold, there could be a sharp fall but I think it will hold as support, at least until the New York session.
Regarding the GBP, there will be a release of Services PMI data at 9:30am London time. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm, followed by Unemployment Claims at 1:30pm, ISM Non-Manufacturing PMI at 3pm and Crude Oil Inventories at 4pm.