GBP/USD Signals Update
Yesterday’s signals were not triggered as the price did not reverse from the 1.5350 level until after the London session ended.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be made between 8am and 5pm London time.
Short Trade 1
Short entry after bearish price action on the H1 time frame immediately following the next touch of the bearish trend line currently sitting at 1.5416.
Place 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.
Remove 50% of the position as profit at 1.5350 and leave the remainder of the position to ride to 1.5120.
GBP/USD Analysis
I forecasted yesterday that the horizontal level at 1.5350 was likely to prove to be supportive, and so it was, although so far the move up from there has been quite weak. The picture is complicated by the broken bullish trend line at 1.5416 which could get in the way of any move up from here. As we have just been at 1.5350 I am not looking to get long again there yet. The biggest opportunity today is likely to be a reversal off the broken trend line which then breaks down through 1.5350. The initial reversal may happen naturally but we are likely to need something bearish in the news events today for the price to break down below 1.5350. This would be a serious reversal to recent GBP strength.
At 9:30am London time there will be a release of U.K. Construction PMI data followed by the Governor of the Bank of England’s testimony to the British Parliament at 10am, which may affect the GBP. There are no high-impact events scheduled concerning the USD.