GBP/USD Signal Update
Yesterday’s signals expired without being triggered as the price did not reach 1.6623, and did not show any bearish price action when it reached 1.6753.
Today’s GBP/USD Signals
Enter only before 5pm London time today.
Long Trade 1
Enter long with a buy limit order at the first touch of 1.6753.
Place the stop loss at 1.6690.
Adjust the stop loss to break even when the price reaches 1.6815.
Take 50% of the position as profit at 1.6815 and leave the remainder of the position to ride.
Short Trade 1
Take a short entry after confirming bearish price action on the H1 chart following a first touch of 1.6884.
Put a stop loss 1 pip above the local swing high.
Close the trade at 1.6830.
I wrote yesterday that I had a bullish bias on this pair and this has been borne out by the fact that today we have reached a new four and a half year high even before London has opened. The immediate reason for this was the excellent economic data that was released by the UK government yesterday.
There was flipped resistance below us at 1.6753 which is quite likely to act as good support in the fairly unlikely event that we get back down there during today’s London session, as we broke upwards through that level so strongly and cleanly.
Above us there is old flipped resistance from 2009 at 1.6884 that if confirmed by bearish price action could be a good area to take a conservative short.
We are far enough away from 1.6753 to look for a long touch trade there.
There are no high-impact news releases due today concerning the GBP. At 1:30pm London time there is a release of US Unemployment Claims data, followed by the Philly Fed Manufacturing Index at 3pm. Therefore it is likely to be fairly quiet for this pair before the New York open.