GBP/USD Signal Update
Last Thursday’s signals were not triggered as the bearish price action took place a little above the resistance level identified at 1.2464.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the trend line currently sitting at about 1.2450 or 1.2364.
Put 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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2532 or 1.2665.
Put 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 last Thursday that “It is significant that the GBP held up yesterday against a strongly bullish USD move. This suggests that when the USD stops going up, this pair should then rise.”
This is exactly what we have begun to see in this pair, although the rise has not been very strong. However, we have now seen the price get above 1.2500 for a while, which was significant, although it failed to hold or break up past the top of that area of resistance at 1.2532.
If the USD really starts to sell off, this pair should start to look like an attractive long trade. The Pound is probably being boosted by continuing rumours of plans by some key political figures in the U.K. to postpone or even derail the Brexit timetable announced by the Government, and make sure the U.K. stays in at least a single market.
There is nothing due today concerning either the GBP or the USD.