GBP/USD Signal Update
Monday’s signals were not triggered and expired.
Today’s GBP/USD Signals
Entries must be made between 10am and 5pm London time today.
Long Trade 1
Take a long entry with a buy limit order at the first touch of 1.6623.
Put a stop loss at 1.6588.
Move the stop loss to break even when the price reaches 1.6656.
Take 50% of the position as profit at 1.6695 and leave the remainder of the position to run.
Short Trade 1
Take a short entry after confirming bearish price action on the H1 chart following a first touch of 1.6753.
Put a stop loss 1 pip above the local swing high.
Move the stop loss to break even at 1.6715 and take 75% of the position as profit there.
Leave the remainder of the position to run.
Since my previous signals and analysis two days ago on Monday morning, we had a move down to the support level that I had identified at 1.6657 which turned right on the pip, triggering a fairly bullish candle and a small move upwards which has held.
It can now be seen from the chart that a new flipping support/resistance level, which is likely to now act as resistance, has been established just above the current price at the time of writing at 1.6753, very close to the important psychological level of 1.6750. Above that there is no significant flipped level before 1.6884, which is a little too far away to be of concern to us today.
I would not want to look for another long trade at 1.6657 just yet so I look to the flipped supportive level just below that at 1.6623 for the next long.
Although the USD has strengthened this week, every indication is still bullish and we are firmly within a long-term bullish channel.
The UK news this morning will probably be key to the day’s initial direction and if that produced a bearish bounce off 1.6753 it should be good for a short trade, but it will probably not carry very far unless the numbers are far worse than expected. Conversely if the news is good and we break 1.6656 strongly, we could carry all the way up to 1.6800 which is confluent with today’s GMT daily R2 pivot point.
There are high-impact news releases due today concerning both the GBP and the USD. Firstly at 9:30am London time there are the Claimant Count Change, and Unemployment Rate data releases. Later at 1:30pm London time there is a release of US Building Permits data. The Chair of the Fed is speaking just after the London close at 5:15pm. Therefore it is likely to be a fairly active day for this pair.