GBP/USD Signal Update
Last Thursday’s signal expired without being triggered.
Today’s GBP/USD Signal
Risk 0.75%.
Entry may only be made between 8am and 5pm London time today.
Long Trade 1
Long entry at the first touch of 1.6914.
Place a stop loss at 1.6884.
Move the stop loss to break even when the price reaches 1.6945.
Take off 75% of the position as profit at 1.6990 and leave the remainder of the position to run.
GBP/USD Analysis
This pair is still trying to break through the resistance zone overhead from 1.7041 to 1.7062, and failing. However we have been too close to this zone for too long for me to feel comfortable taking a short trade here right now. Despite my reluctance, I believe the balance of probability is that we will move down from here, possibly all the way to the bullish trend line below and also the flipped support level at 1.6914. This should be a good area at which to go long, and as we are quite a long way from there at the time of writing, I am looking for a long touch trade at 1.6914 should we hit that level during today’s London session.
Despite my short speculation, the daily chart still looks bullish and it might be that we are able to break through the resistance soon and continue upwards to 1.7250 and beyond. My colleague Christopher Lewis agrees with this proposition. It does not look like we have enough high-profile news today to trigger this kind of breakout, however.
There are no high-impact news releases scheduled today that are likely to directly affect the GBP. Later at 3pm London time there will be a release of US Pending Homes Sales data, which may affect the USD. It will probably be quiet before the New York session and even then, there might well not be much activity in this pair.