GBP/USD Signals Update
Last Wednesday’s signals were not triggered as although the price did reach 1.5390 it did not show any bullish price action when it hit this level.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5078.
Place 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.
Remove 50% of the position as profit when the price reaches 1.5155 and leave the remainder of the position to ride.
Long Trade 2
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4970.
Place 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.
Remove 50% of the position as profit when the price reaches 1.5075 and leave the remainder of the position to ride.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5187.
Place 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.
Remove 50% of the position as profit when the price reaches 1.5100 and leave the remainder of the position to ride.
Short Trade 2
Go short following the first touch of 1.5300.
Place the stop loss at 1.5325.
Adjust the stop loss to break even once the trade is 25 pips in profit.
Remove 50% of the position as profit when the price reaches 1.5200 and leave the remainder of the position to ride.
GBP/USD Analysis
This pair was trending upwards quite nicely but dropped sharply at the end of last week.
There is a great deal of uncertainty over the result of the British General Election this Thursday, and the U.S. Non-Farm Payroll data on Friday will also have a big impact. So although there is plenty of data coming, we can expect the pair to range erratically until Thursday, barring some dramatic development. This means that the support and resistance levels are quite likely to hold in the meantime.
There are a few high-impact events scheduled today concerning both the USD and the GBP. There will be a release of U.K. Construction PMI data at 9:30am London time. Later there will be a release of U.S. Trade Balance data at 1:30pm London time, followed at 3pm by U.S. ISM Non-Manufacturing PMI.