GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.3159.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3159.
Place 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.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3361.
Place 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
I wrote yesterday that it would be very bullish if the price were able to get established above 1.3159 easily. It was in fact able to do quite easily, and unusually for this pair, has continued to rise and is still rising. It is extremely bullish behaviour.
It seems driven by the fact that the U.K. now has some political stability, at least for a year or two, as a new Prime Minister will take office later today. She is a relatively unifying figure.
The global rally in risk assets was also strong yesterday and this too has helped the Pound.
The chart below shows that the price is now approaching an area of relative previous congestion, so the advance may slow down. A short trade entry is possible at a bearish rejection of 1.3360 but I would not look very hopefully at a short trade yet.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.