GBP/USD Signal Update
Last Thursday’s signals were not triggered as the price never reached either 1.6656 or 1.6883.
Today’s GBP/USD Signals
Enter only between 8am and 5pm London time.
Long Trade 1
Enter long following confirming H1 price action after the first touch of 1.6656.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even when the trade is 25 pips in profit.
Take off 50% of the position as profit at 1.6710 and leave the remainder of the position to ride.
Long Trade 2
Enter long with a buy limit order following the first touch of 1.6600.
Place the stop loss at 1.6565.
Adjust the stop loss to break even when the trade is 35 pips in profit.
Take off 25% of the position as profit at 1.6645 and leave the remainder of the position to ride.
Following the strong trend resumption of recent days after our bounce off the long-term bullish trend line, we had a pull-back towards the end of last week. Although the indications are still bullish, looking at a long-term chart it can be seen that we just cannot get a weekly close above 1.6760, and the resistance at around this level so far is keeping a cap on further bullish development. Despite that, all the higher time frame candlestick analysis and trend tools are showing a bullish situation. This indicates we should keep a bullish bias but be mindful of how hard it is proving to be to break through the 1.6750 area which is also crucial psychologically.
Should the pull-back continue further down we will reach a zone which could provide some good long opportunities before the bullish trend line is reached.
There are no high-impact news releases due today concerning the GBP. At 1:30pm London time there is a release of US Retail Sales and Core Retail Sales data. Therefore it may be a fairly quiet morning, although this pair has been very active so that activity might carry through.