GBP/USD Signals Update
Yesterday’s signals were not triggered as although the resistance level at 1.3371 did cap the day’s high price, the following bearish inside candle on the hourly chart was not broken down by its next candle, so a short entry was not given.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3256 or 1.3162.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3345, 1.3371 or 1.3479.
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
After a bullish week for the Pound, even within this pair despite the recent strength in the USD as well, there are some initial signs that the price may be topping out and preparing for some kind of move down. It looks as if the next day or so will probably be crucial. The resistance level at 1.3371 and also its lower peak at 1.3345 held fairly convincingly. We have had three taps showing upper wicks. We really just need a lower key swing high to made, preferably during the early London session, and then we would be well poised for a breakdown.
Alternatively, I the price can remain above 1.3371 it has quite a lot of room to rise further.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.