GBP/USD Signal Update
Wednesday’s signals were not triggered and expired.
Today’s GBP/USD Signals
No signal is given today.
Yesterday’s FOMC statement has changed the market sentiment to be markedly more positive on the USD. The USD rose sharply against the JPY and also against the EUR, though not so very strongly against the GBP, which has showed some strength. This is not so unexpected as it has been the strongest risk currency of recent months.
There is important news today for the USD at 1:30pm (Unemployment Claims) and 5pm (Existing Home Sales and Philly Fed Manufacturing Index) London time.
Yesterday saw a strong bullish break out of the previously identified bearish channel, as can be seen in the chart below. The price briefly made another 2 year high last night before being rejected by all the trend lines from the old broken channel above, although I am not placing great weight on any trend lines in this pair at the moment. During the Asian session the price has been quietly consolidating.
There is no real indication of the next direction here, and we are far away from any major S/R levels, therefore I am giving no signal today. It can still be said though that the greatest potential seems to be on the downside. Traders determined to look for an entry today could look for shorts around the 1.6450 region, if the price gets there before the London close. For longs, the confluence of the broken channel trend line, round number and 38.2% bull channel Fibonacci retracement level around 1.6300 might be a good bet.