GBP/USD Signal Update
Yesterday’s long signal was not triggered and expired.
Today’s GBP/USD Signal
Risk 0.75%.
Entry must be made between 8am and 5pm London time today.
Long Trade
Enter long with a limit order at a first touch of 1.6475.
Stop loss at 1.6445.
Move the stop loss to break even when the trade is 45 pips in profit and take 75% of the position as profit. Leave the remainder of the position to ride.
GBP/USD Analysis
I was correct to expect a continued move up yesterday and as I suspected, the resistance at 1.6700 was a barrier to the upside, with the day’s high being made at around 1.6725.
The support level at 1.6620 is still significant but I would not want to trade off it again just yet. Therefore I am only looking for another long opportunity at the next significant level below that, which is 1.6475.
Although this pair has a bit more life in it than most, the entire market is very quiet and volatility has dried up everywhere.
There are no obvious tradable resistance levels above us, so I have no zone at which to look for a short, therefore I am focusing on the long side. This also fits the long-term profile of this pair which is still bullish on all the higher time frames. Yesterday’s daily candle completed a bullish double engulf, which is relatively weak, but still bullish.
Today’s action is difficult to predict as we may well need to fall before we can get some demand to rise again. The news at 9:30am London time may give us some impetus.
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There is an important GBP data release scheduled for today at 9:30am London time (Second Estimate Quarterly GDP). For the USD, there is New Homes Sales data that will be released at 3pm. As we have data on both sides of this pair, it is likely to be one of the most active pairs during today’s London session.