GBP/USD Signals Update
Yesterday’s signals produced a losing short trade following the bearish rejection of the resistance identified at 1.4462.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken from 8am until 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4285 or 1.4241.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4520 or 1.4571.
Put 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 ride.
GBP/USD Analysis
This pair is in quite a similar situation to its sister pair EUR/USD. The USD is very strong, and the GBP not much less strong, so the pair is caught in a narrow technical battle between the supportive trend line shown in the chart below and plenty of resistant levels above. The price was held by the closest of the resistant levels, the level at 1.4462, although unfortunately a short trade taken off the first rejection of that level was a losing trade. Although this level may ultimately hold, I would not look to trade off it again today.
It is hard to say what will happen next. The fight is over a narrow sliver of territory.
Concerning the GBP, there is a release of Manufacturing Production data at 9:30am London time. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm.