GBP/USD Signal- Dec. 30, 2013
Today’s GBP/USD Signals
Entry should be made before 5pm London time today only.
Long Trade 1
Enter long at the next bar break of an hourly pin bar or strong outside or engulfing bar rejecting and closing above the support level of 1.6400. If this level is not touched and rejected by the same hourly bar, or if an hourly bar closes more than a few pips below this level, the trade is immediately invalidated and should not be taken.
Stop loss 1 pip below the local swing low.
Take profit on 75% of the position at 1.6449 or more if that is needed to take the risk off the trade. Let the rest of the position ride.
Long Trade 2
Enter a long touch trade by placing a limit order at 1.6325 with an initial stop loss at 1.6287.
Take profit on 50% of the position at 1.6375 and move the stop loss to break even.
Take half of the remainder of the position as profit at 1.6399 and then let the rest of the position ride.
The uptrend in this pair was quietly maintained over the Christmas period with bullish trend lines holding, before spiking upwards dramatically on Friday to reach a new high. Although the price quickly retreated from this spike, I agree with Christopher Lewis’ belief that the line of least resistance is still currently upwards, so we should take a long bias.
It is a little hard to see, but Friday’s price action flipped resistance at around the 1.6400 level to support. This is confluent today with the S1 pivot point, which should be supportive.
The nearest major support below that is at 1.6325. As this is more than 160 pips below where we are at the time of writing, a limit buy order to go long can be placed there if we hit this price before 5pm London time today:
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