GBP/USD Signals Update
Yesterday’s signals provided a possible short trade off the identified resistance level at 1.3000 following the doji candlestick breaking down. However this gave only about 24 pips and so might have turned into a losing trade.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken from 8am to 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 1.3000.
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.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3159.
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 run.
GBP/USD Analysis
Yesterday it was confirmed that the new Prime Minister of the U.K. will be Theresa May, who was the “safe” candidate available for the position. She was pro-Remain but has pledged to unite the party and implement Brexit.
This result is fairly pleasing to the market, and we have seen the pound begin to rally a little.
Technically, it is significant that we have had not only a sustained break up above 1.3000 but also that the price is now leaning on 1.3050 for support, which was formerly resistance, which is a bullish sign.
The next resistance level of 1.3159 looks in sight. It would be very bullish if the price were able to get established above there easily.
There is nothing due today concerning the USD. Regarding the GBP, the Governor of the Bank of England will be testifying before Parliament about the Bank of England’s Financial Stability Report.