GBP/USD Signal Update
Yesterday’s buy signal at 1.6620 was triggered by most brokers, for others the price may have come to within less than 1 pip from the entry price, not quite triggering the trade. The price has subsequently reached the point at which the stop loss was specified to be moved to break even, so the risk is now off the trade. The price at the time of writing is sitting just a few pips above the new stop loss point. Take 50% of the position as profit at 1.6665 and trail the remainder of the position with a trailing stop of 30 pips, unless of course the trade is stopped out at breakeven first.
Today’s GBP/USD Signal
No New signal is given today, as the identified support and resistance levels that are expected to be useful are too far away from the current price to be of interest today.
The price fell strongly yesterday, printing a solidly bearish candle that has broken away from the range of the previous few days. The price bounced up after being unable to penetrate below the identified support level of 1.6620, and since this occurred during yesterday’s New York session the price has been bouncing between 1.6620 and 1.6650.
It seems likely that the support level at 1.6620 is quite used and it may not give much more in the way of long pips. However the price may hold up until it gets some direction from the news due later this morning during the first half of the London session. Should the price succeed in breaking below 1.6620, it is likely to head towards 1.6500.
The key psychological number of 1.6750 has emerged as a powerful local resistance level, as the price has been sold off quickly every time it was able to rise above this level during the past week. Despite that I am not quite ready to look for shorts before 1.6884.
Things are certainly looking more bearish on the daily and weekly time frames, although the monthly chart still looks very bullish. We are below the opening prices of all the recently daily bullish candles from both the daily and weekly time frames. However we are still firmly established within a wide, long-term bullish channel.
At 9:30am London time there will be a release of Manufacturing Production economic data concerning the GBP, as well as the Inflation Report Hearings. Later at 2pm there is the USD-related JOLTS Job Openings. There should be some activity today in this pair.