GBP/USD Signals Update
Yesterday’s signals may have been triggered by the pin-style bullish candle rejecting the support zones at 1.3300/1.3290. So far the trade is going nowhere in any certain way and it would probably be wise to exit any such trade immediately.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered 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 1.3300/3290, 1.3268 or 1.3250.
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
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3478.
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
It is starting to look as if we finally have an end to the bullishness and the possible beginning of a major downwards movement, with the double top forming ending in a sharp drop, and now it looks as if the end of a head and shoulders style pattern might be forming, which would also have bearish implications.
However there are a few support levels between 1.3300 and 1.3250 and so far these have prevented any stronger movement from happening yet.
Later today there will be the major monthly report from the Bank of England which is widely expected to provide some kind of easing on the Pound. Any surprises in the direction of looser than expected policies would be likely to provide the catalyst for a downwards movement through support. Any bullish surprises could easily send the price higher towards the 1.3500 area.
Concerning the GBP, there will be a release of the Bank of England Inflation Report, Votes, Monetary Policy Summary and Official Bank Rate at Noon London time, followed half an hour later by the usual Press Conference from the Governor. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.