GBP/USD Signal- Dec. 10, 2013
GBP/USD Signal Update
Yesterday’s signal was not triggered.
Today’s GBP/USD Signal
Entry should be made before 5pm London time today only.
If 1.6392 is touched between 9:30am and 9:45am London time this morning, enter long with a limit order at 1.6392 and a stop loss at 1.6362.
Otherwise, enter long at the next bar break of an hourly pin or strong outside bar rejecting and closing above the support level of 1.6392. 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 at the local swing low or 1.6362, depending upon how close the entry is to 1.6392. If the entry is very close, then the lower of the two should definitely be used.
Take profit on 75% of the position at 1.6432. Let the rest of the position ride.
There is a major GBP economic data release schedule for 9:30am London time, so we may well see the low or high of today shortly after that time after some strong and sudden movement.
The chart below shows that yesterday we broke quite bullishly out of the ambiguous triangle that was identified yesterday. The uptrend continues, with the price having made a new 2-year high earlier this morning. There is no good support level nearby that can be identified from the 4 hour chart; as the trend is strong I have taken a level plainly visible from the 1 hour chart confluent with today’s pivot point as support for a possible long entry.
The price tried to break upwards through 1.6392 towards the end of last week but failed, making a peak. Yesterday the price gained enough momentum to make the breakout by using 1.6370 and the broken upper trend line of the triangle as support. It therefore looks likely that this zone between 1.6370 and 1.6392 has some buying power left within it.
The bullish trend is intact.
- Currency Pairs