GBP/USD Signal Update
Last Thursday’s signals expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75%.
Entries must be made prior to 5pm London time today.
Long Trade
Go long following bullish price action on the H1 time frame after the first touch of 1.6623.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.6650.
Take off 75% of the position as profit at 1.6650 and leave the remainder of the position to run.
Short Trade
Go short following bearish price action on the H1 time frame after the first touch of the bearish trend line shown on the chart in the 1.6790 area.
Place a stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.6710.
Take off 50% of the position as profit at 1.6710 and leave the remainder of the position to run.
GBP/USD Analysis
After Wednesday’s sharp drop, Thursday and Friday were relatively quiet days during which the pair was not really above to move down any further, despite breaching the support at 1.6684. The price action on these two days suggests we are now going to get some kind of bullish pull back, and this has been continued with a bullish weekend gap that at the time of writing has not been filled yet.
Such gaps usually get filled and there is no reason not to be bearish on the GBP, so it seems likely the next good trade is going to be a short. The turnaround is quite likely to come somewhere between 1.6765 – this area saw a few recent daily lows that have not been retested – and the bearish trend line at 1.6790.
There are no high-impact data releases due today concerning either the GBP or the USD. Therefore it is likely to be a very quiet day today.