GBP/USD Signals Update
Last Thursday’s signals expired 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 1.4087.
* Put the stop loss 1 pip below the local swing low.
* 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 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4050.
* Put the stop loss 1 pip below the local swing low.
* 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 1.4400.
* 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
This pair seemed to find good buying support at the psychologically key level of 1.4250 towards the end of last week, closing Friday by moving up quite strongly to 1.4400. However the price opene4d this week with a gap down of almost 150 pips and then continued to fall even further. The price is currently at the time of writing testing the support at 1.4205.
These gaps usually do get filled which would suggest there is a potential long trade. However the gap down has probably been caused by fears over a British exit from the European Union which will be put to a free vote by the people in June. The British Pound will probably continue to suffer every time a poll is published showing the exit camp is leading the polls and recover when the situation is reversed.
There is nothing due today concerning either the GBP or the USD.