GBP/USD Signals Update
Last Thursday’s signal was not triggered as although the price did hit 1.5750 during that day’s London session, there was no bullish price action there on the H1 chart.
Today’s GBP/USD Signals
Risk 0.75%
Trades must be made before 5pm London time.
Short Trade
Go short following bullish price action on the H1 time frame once the price has first touched the level at 1.5789.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit when the trade is 30 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
Last Thursday morning when I gave my previous analysis, the price was moving down towards 1.5750 which was expected to be a supportive level. The price did hit 1.5750 and initially gave a small bounce, but was unable to follow through with any conviction. Using the H1 chart to look for bullish price action on the bounce was a good way to stay out of this long trade. In fact the actual failure to bounce up at that point was the catalyst printing a reversal that then acted to drive the price lower during the following New York and Asian sessions.
The price briefly broke the 1.5600 level on Friday before recovering quite strongly. The chart currently shows an uncertain picture which has been typical lately. There are no obvious levels of interest except for a previously supportive inflection above us at 1.5789 that could prove to be an interesting level at which to look for short trade. Unfortunately it is quite likely we will not reach that price today.
There are no high-impact news releases scheduled today that are likely to directly affect either the GBP or the USD. Therefore it will probably be a quiet day for this pair today.