GBP/USD Signal Update
Thursday’s signal was not triggered.
Today’s GBP/USD Signal
Entry should be made before 5pm London time today only.
Enter long with a limit order at a touch of 1.6260.
Stop loss at the lower of local swing low, initially 1.6220.
Move stop loss to break even and take profit on 50% of the position at 1.6325.
There are no major economic data releases scheduled for today before 5pm London time, so it is likely to be a slow day with little strong movement; therefore the signal is very unlikely to be triggered. The chart below shows that recent action has been somewhat bearish: the support level at 1.6325 has been worn away too much to be reliable, leaving only the presumed support level below at 1.6257. However, new clear resistance levels have not been established. Despite that, there is a suggestion of resistance at 1.6370, established on 4th December and rejected on Friday, which is currently confluent with the inner upper trend line of the triangle.
By drawing trend lines we can see that the price has been consolidating within a triangle. Unfortunately the lines are ambiguous and probably weak on both sides, so are not reliable. There is bullish action so far today, and the inner upper trend line is being tested right now. I am fairly confident in the signal of the long touch trade at 1.6260 as it is very far away from the current price. The lower bullish trend line has held for about a month.