Today’s GBP/USD Signals
Entry should be made before 5pm London time today only.
Long Trade 1
Enter long with a limit buy order at a first touch of 1.6425.
Stop loss at 1.6388.
Move the stop loss to break even when the trade is 25 pips in profit and let it run.
Short Trade 1
Enter short with a stop sell order at a next bar break of a relatively large hourly pin or engulfing bar after a first touch and rejection of 1.6620. The trade is invalidated once an hourly bar closes above this level.
Stop loss at the local swing low.
Move the stop loss to break even when the trade is 20 pips in profit and let it run
Yesterday saw the pair rise dramatically. Earlier this morning it reached a key resistance level at 1.6620. The level has held. If the level is hit again and rejected fairly strongly, it will be a good set-up for a short trade.
Below the current price, resistance has flipped to support at 1.6475, which is confluent with today’s S1 GMT pivot point. Although this is a long way away, it looks to be the safest long entry point.
We are undoubtedly in a strong uptrend. What is now key is to watch for whether the pair makes a new multi-year high, or fails to beat its high of January. Although the situation is very bullish, we are approaching levels that the Bank of England does not want to the GBP to see much of.
There is no important news due today for the GBP. Concerning the USD, there are important data due at 1:30pm London time: Retail Sales and Unemployment Claims. This means we are quite likely to have a quiet early London session and a more active New York session.