After reviewing yesterday’s GBP/USD forex signal, we find that the pair successfully achieved its goal.
Short Trade Ideas
The best short ideas today are from the following levels: 1.3500, 1.3530 and 1.3574.
Stop losses in the short strategy should be placed specifically at the 1.3584 level.
Collect profits on an average of 30 to 50 pips from each level.
Stop loss is moved to the entry point when making 20 pips in profit.
Long Trade Ideas
The best long trade today is from the following levels: 1.3260 and 1.3184.
Stop losses in the long strategy should be placed at the 1.3174 level.
Collect profits on an average of 30 to 50 pips from each level.
Stop loss is moved to the entry point when making 20 pips in profit.
Money Management Strategy
Use 1% to 2% of your portfolio value in each trade and distribute this percentage on the stop loss points.
GBP/USD Technical Analysis
Yesterday, the GBP/USD broke the strong 1.3400 resistance point after reaching it several times. We indicated in a previous report that there are stop loss orders for many traders above this point and that the pair would likely break that point, and it did.
The pair rose to the point we indicated for selling, which is at 1.3441, then rebounded south again, achieving our full target.
Today, the pair faces a new resistance point at the 1.3480 level, so it remains to be seen if the pair will succeed in breaking that area again and move towards the northern targets that appeared to be heading towards them several weeks ago.
The 1.3480 level is a very important point at the moment, so we should monitor that well today.
The best intraday long targets are 1.3260, 1.3184.
The best intraday selling levels are considered at 1.3500, 1.3530, 1.3574.
GBP/USD Fundamental analysis
There is no important economic data due today for the GBP. Regarding the US dollar, there are several important economic reports and data expected today:
At 4:15 pm KSA time, the United States will release the change in non-farm private sector jobs. This report identifies the change in the level of those who were employed during the past month, except for those who were employed in the agricultural sector.
6:00 pm KSA time, the Federal Reserve Chairman will be testifying before the Joint Economic Committee on the economic outlook and recent monetary policy measures.
At 6:30 pm KSA time, a US crude oil inventories report will be released, which determines the weekly increase in the number of crude oil barrels stored by US companies.
GBP/USD Signals Summary
December only brought strong price fluctuations over the past years, so be ready for very violent trades this month.
The broken GBP/USD trend has been successfully re-tested, indicating that the pound is technically heading to the downside. But with violent price fluctuations tightening the screws on the pair for several weeks, this may come with an unexpected strong price movement.
Commitment to loss stops is the most important step to follow.