GBP/USD Signals Update
Last Thursday’s signals were not triggered as there was no bullish price action at 1.5464.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.5536 and 1.5544.
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.
Remove 50% of the position as profit when the price reaches 1.5505 and leave the remainder of the position to run.
Short Trade 2
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the bearish trend line currently sitting at around 1.5615.
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.
Remove 50% of the position as profit when the price reaches 1.5555 and leave the remainder of the position to run.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5414.
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.
Remove 50% of the position as profit when the price reaches 1.5575 and leave the remainder of the position to run.
GBP/USD Analysis
The environment has changed since I made my previous forecast for this pair last Thursday morning, as that day the Bank of England began to give out a more dovish outlook for this currency, producing a weaker GBP. Before, the GBP was the most relatively strong of all the major currencies after the USD. This announcement caused an initial fall, although the price did bottom out quite quickly at the long-term bullish trend line which has contained the price for two and a half months now. A break below that trend line and the key support at 1.5414 might see a short fall. There is also important flipped resistance not far overhead beginning just above 1.5500.
Nevertheless, the GBP might begin to recover, as it was notable that the fall after the announcement was not so very strong and dramatic as might have been expected.
There is nothing due today regarding the GBP. Concerning the USD, FOMC Member Lockheart will be speaking at 5:25pm London time.