GBP/USD Signals Update
Yesterday’s signals were not triggered as the price never reached either 1.4650 or 1.5175.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be made between 8am and 5pm London time only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next test of the short-term bullish trend line currently sitting at around 1.4825.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the first test of the trend line currently sitting at around 1.5180.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to ride.
GBP/USD Analysis
Yesterday was a fairly quiet day for this pair, as the attention was all grabbed by the EUR, USD, AUD and NZD. The price did not move very far.
The technical picture is beginning to short a triangle with a flat top, suggesting a bullish break out of the local resistance at around 1.5000.
A return to the bullish trend line below accompanied by a bullish price action reversal would be a good signal to get long.
It is very unlikely we will reach the old trend line at around 1.5180 today, but it is very well established and should act as resistance especially if it is hit from a long way away.
There are high-impact events scheduled today concerning both the GBP and the USD. At 9:30am London time there will be a release of U.K. CPI data. Later at 12:30pm there will be a release of U.S. CPI data followed at 2pm by New Homes Sales data.