GBP/USD Signals Update
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4350.
* 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 25 pips in profit and leave the remainder of the position to run.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4500.
* 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 25 pips in profit 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 1.4555.
* 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 25 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
Something interesting happened yesterday: this pair did not fall when all the other “risk” currencies were falling against the USD. There are two possible reasons for this: the GBP is starting to find support, and is about to begin a deep pullback or even trend change as it reaches historically very low prices at which it usually tends to be bought. The alternative reason might be that very important central bank data is due today regarding the GBP, so the price is just steadying in advance of that.
The price is unlikely to go anywhere until the Bank of England releases soon, which may well cause a spike to support or resistance levels. A spike up to 1.4500 or higher followed by a quick fall would probably be the best trading opportunity.
Concerning the GBP, there will be lots of news due at Noon London time: the MPC Official Bank Rate Votes, the Monetary Policy Summary, and the Official Bank Rate. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm.