GBP/USD Signal Update
Last Thursday’s signals were not triggered and expired.
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 1.6620.
Stop loss at 25 pips.
Move the stop loss to break even when the trade is 25 pips in profit and let it run.
The end of last week saw the pair make a dramatic parabolic high, which saw new multi-year highs being made. The resistance level of 1.6620 did hold very briefly before the price broke upwards very strongly, therefore I see this level as likely support. I had also expected the key psychological level of 1.6750 to provide some resistance but the price just blew right through this level. Due to the extreme strength of the GBP, I am not looking for any short trades. The nearest strong support will probably be at 1.6620, which is only 12 pips above today’s GMT S2 daily pivot point, and 20 pips above a round number, so there is some confluence there.
Although the situation is very bullish, I am not sure that the Bank of England will be happy to see the GBP this strong, and parabolic rises can be followed by parabolic falls, so we might get a sharp pull back, but I very strongly believe that would not lead to anything else than another rise quite soon afterwards.
There is no important news due today for the GBP or the USD. As it is also a public holiday in the USA, it is likely to be a very quiet trading day unless there is dramatic and unexpected news.