GBP/USD Signal Update
Yesterday’s signals expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75%
Entry before 5pm London time only.
Long Trade 1
Go long with a buy limit order at the first touch of 1.6656.
Place the stop loss at 1.6589.
Adjust the stop loss to break even when the trade is 25 pips in profit.
Take off 90% of the position as profit at 1.6745 and leave the remainder of the position to run.
Short Trade 1
Go short after confirming H1 price action at the first touch of 1.6883.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even when the trade is 25 pips in profit.
Take off 90% of the position as profit at 1.6830 and leave the remainder of the position to run.
GBP/USD Analysis
Yesterday saw a further extension of the recent bullish move up off the touch of the long-term bullish trend line about 2 or three weeks ago. We had a move up, a smooth pullback, and are now making new highs. Last night we got close to equalling the near 5-year high that this pair made in February.
We have been in a long term bullish channel since November and in a major uptrend since last July. Every indication including higher time frame candlestick analysis is bullish.
The recent move has been caused mostly by USD weakness.
Although we have fallen off from yesterday’s high in overnight and early morning trading today, it would not be unusual for this pair to have another up day, although the move may be a little exhausted for now. Therefore it is difficult to say what exactly is going to happen next.
Above the multi-year high, there is very old resistance at 1.6884. If we reach this level during today’s London session it could make a good short trade as the upwards move would be extremely over-extended by then. It is within range of the current price so I would want to see bearish price action there first before entering.
Below us from 1.6656 downwards there are a few closely packed flipped support levels. As 1.6656 is a long way from the current price, I will look for a long touch trade there with a stop under all the levels and below the round number of 1.6600, which should be good for an upwards bounce.
There are high impact news releases due for both currencies within this pair, so the day is likely to be a pretty active one. At Noon London time there is the release of the UK’s Official Bank Rate, Asset Purchase Facility, and MPC statement. Later at 1:30pm there will be the release of the USA’s Unemployment Claims data. Therefore it is likely to be quiet until about 11:30am.