GBP/USD Signals Update
Last Thursday’s signals might have signaled a long trade off a supportive inside candle. This would have been a losing trade.
Today’s GBP/USD Signal
Risk 0.75% per trade.
Trades may only be entered between 1pm and 5pm London time today.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5451.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit when the price reaches 1.5380 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 1.5490.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit when the price reaches 1.5380 and leave the remainder of the position to run.
Short Trade 3
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5533.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit when the price reaches 1.5460 and leave the remainder of the position to run.
GBP/USD Analysis
The pace of the sharp drop in this pair slowed down at the end of last week, but the price still closed sharply down, not far off the low of the week. There is now plenty of resistance overhead, initially at 1.5451, but above that there is a confluence of a formerly supportive zone that has probably now flipped to resistance plus two trend lines, so it looks like there could be a good short after some kind of pull back over the next day or two. We might well reach the first resistance level later today after New York opens.
There is nothing due concerning either the GBP or the USD today. It is a public holiday in the U.K. so liquidity will probably be very light until the New York open later.