GBP/USD Signals Update
Yesterday’s signals gave a nicely profitable short trade off the identified resistance at 1.4800, falling all the way to the next identified support level at 1.4691.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must 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 touch of 1.4799.
* 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 1.4874.
* 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.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4691.
* Place 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 25 pips in profit and leave the remainder of the position to run.
Long Trade 2
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4600.
* Place 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 25 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
I forecast yesterday that there might be a bearish turn at 1.4800, and this turned out very well as a short trade, with a nicely stretched bearish pin bar pointing the way down. The support just below 1.4700 held as well, so support and resistance levels are behaving quite predictably. It is hard to say what exactly will happen next but another rejection of the support at 1.4691 early in the London session would suggest some kind of upwards move today. However the long-term trend is bearish so it might make better sense to hang onto any existing shorts and look to add to them at bearish turns after any bullish pull backs.
Concerning the GBP, there will be a release of Construction PMI data at 9:30am London time. There is nothing due regarding the USD.