GBP/USD Signals Update
Yesterday’s signals may have given a profitable short trade off the bearish reversal from 1.5800. It would probably be wise to close most of anything open from there now.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be made before 5pm London time only.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5653.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the price reaches 1.5700 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 next touch of 1.5711.
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 price reaches 1.5730 and leave the remainder of the position to ride.
Short Trade 2
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5803.
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 price reaches 1.5805 and leave the remainder of the position to ride.
GBP/USD Analysis
I wrote yesterday that “the price is currently struggling to break up above 1.5800 as London opens. It if cannot break up fairly quickly past this level, it is likely to fall, so we should get an early clue as to today’s probably direction.” This was exactly how it turned out, and the price broke below trend line and horizontal support fairly easily.
It seems probably that the previous support at around 1.5700 has now flipped to resistance, with the exact level being at 1.5711. There is support below at 1.5653, but a strong break below that could lead to a dramatic fall as there is not much support below that.
There are no high-impact events scheduled today for the GBP. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.