GBP/USD Signals Update
Yesterday’s signals expired as there was no bearish price action at 1.4310.
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 the broken bearish trend line at 1.4275.
* Put the stop loss 1 pip above the local swing high.
* 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 25 pips in profit 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 1.4205.
* Put the stop loss 1 pip above the local swing high.
* 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 25 pips in profit 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 1.4500.
* Put the stop loss 1 pip above the local swing high.
* 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 25 pips in profit and leave the remainder of the position to ride.
GBP/USD Analysis
I forecast yesterday that “a push up may well run out of steam at the long-term bearish trend line that has held for about 6 weeks now, or the strong resistance at 1.4350.” It seems to have been the latter, the level at 1.4350 that has contained this upwards move. It was impressively strong and significantly, the long-term bearish trend line was broken to the upside. If we now fall back to test it from the other side and it acts as support, it would be a bullish sign so I would watch out for a long trade there.
The level at 1.4350 might act as resistance again but I suspect it is a little late for that.
Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm. There is nothing due regarding the GBP.