GBP/USD Signal- Dec. 4, 2013
GBP/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s GBP/USD Signal
Entry should be made between 8am and 5pm London time today only.
Long Trade 1
Enter after a next hourly bar long break of a confirming pin bar or strong outside bar as follows:
Enter long after confirmation bar touching support level at 1.6325. If a bar closes with more than 75% of its range below this level, do not take the trade.
Stop loss at the lower of local swing low or 1.6290.
Move stop loss to break even and take half the position as profit when the price reaches 1.6388.
Long Trade 2.
Enter long with a limit order at a touch of 1.6260.
Stop loss at the lower of local swing low, initially 1.6218.
Move stop loss to break even and take profit on 50% of the position at 1.6325.
This could be a really great trade if the entry is confluent with one or both of the bullish trend lines shown in the chart below:
The pair may move strongly today as this morning as there is an important news release scheduled for 9:30 London time: Services PMI data. There are also important USD data releases at 1:15, 1:30 and 3pm London time. The pair has been in a strong uptrend since early November, but sold formed a double top at around 1.6433 yesterday. It is in a widening bullish wedge and still quite far away from either trend line. There is no technical reason to say the uptrend has ended, so we maintain our long bias. I agree with Christopher Lewis that the best course is to wait for a pull back and trade long, although the levels I am prepared to come in are somewhat higher than his. There are key support levels at 1.6325 and 1.6257, with the latter likely to be stronger. Both of these levels are currently above bullish trend lines that stretch back to mid-November, and the 1.6257 level is currently confluent with it.
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