GBP/USD Signals Update
Yesterday’s signals expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 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 1.3050 and 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 run.
Short Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3361.
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
This pair is taking a wild ride, making some huge swings, even during the Asian session which is very unusual. The reasons are twofold: the formation of a new British government and the anticipation of key announcements from the Bank of England’s monthly report due later today. The Bank is widely expected to cut interest rates and announce further QE measures as many economists see the British economy as in danger of a slowdown induced by the recent vote to exit the European Union.
For these reasons, price movements over the next few hours can be extremely volatile, but the greater potential must surely be on the bearish side than the bullish side, especially if the interest rate is cut later.
Concerning the GBP, there will be a release of the MPC Official Bank Rate Votes, Monetary Policy Summary and Official Bank Rate at Noon London time. Regarding the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm.