GBP/USD Signals Update
Last Thursday’s signals expired without being triggered as there was no bearish price action at 1.4350.
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 1.4205.
* 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.
GBP/USD Analysis
The picture started to change last week. Although we have a very bearish long-term trend, we broke up past a very well-established bearish trend line with a series of higher lows and higher highs. However the price then fell sharply breaking the recent major lows and falling well below 1.4200 before recovering to trade well above that round number. So the new support has held and we wait to see what happens next. Unfortunately I cannot identify any key “flipped” resistance before 1.4500 which we are enormously unlikely to reach today, so the only viable possibility that I can see would be a return to 1.4205 and a possible long trade entry from a bullish rebound there.
Regarding the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. Concerning the USD, there will be a release of ISM Manufacturing data at 3pm.