GBP/USD Signal- Dec. 31, 2013
GBP/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s GBP/USD Signals
Entry should be made before 2pm London time today only.
Long Trade 1
If at 8am London time the price has already reached 1.6541, enter long before Noon London time if the price breaks the daily high by 1 pip.
Please the stop loss at 1.6472.
Take profit at a reward to risk ratio of 1:1. Even if this cannot be achieved, close the trade out today.
Long Trade 2
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. Take final profit at a reward to risk ratio of 1:1. Even if this cannot be achieved, close the trade out today.
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 a bullish trend line, which should be supportive. The pair sold off a bit yesterday but has risen fairly strongly this morning during the final hours of the Asian session.
The H4 candle closing at London time is currently looking like a bullish outside bar. This indicates a probability of a further rise if its high is broken before Noon London time, but I do not give it as a signal unless it reached 1.6541 before 8am London time.
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