GBP/USD Signal Update
Yesterday’s signals were not triggered and expired.
Today’s GBP/USD Signals
Risk 0.50%.
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.
GBP/USD Analysis
Yesterday saw a falling-off from the multi-year high that the pair made last week. There has however been some support showing at around 1.6700.
The end of last week saw the pair make a dramatic parabolic high. 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 almost exactly confluent with today’s GMT S2 daily pivot point, and 20 pips above a round number, so there is some confluence there.
Due to the parabolic nature of last week’s rise, it is likely the price is going to fall further next before making any new high.
There is no important news due today for USD. Concerning the GBP, at 9:30am London time the UK ZEW CPI data will be released, which usually causes some activity.