GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bullish price action at 1.4220.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Short Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4106.
* 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 2
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4043.
* 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.
GBP/USD Analysis
It looked yesterday as if a key trend line had been broken to the upside, and also that there was new key support at 1.4220 that needed to hold for the bullish move to remain healthy. In the end the price broke below 1.4220 and the trend line seemed to be invalidated. However a closer look at the chart reveals that the trend line was ambiguous and can easily be redrawn in a way that it is still there and intact. My analysis now suggests that the level that really needs to remain intact for bulls is 1.4106, while there is key resistance above from both the trend line and – probably more importantly – 1.4275. I look to the latter for a possible short trade entry.
Regarding the GBP, there will be a release of Manufacturing Production data at 9:30am London time. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm.