GBP/USD Signal Update
There is no outstanding signal.
Today’s GBP/USD Signals
Risk 0.25%
Entries to be made between 8am and 5pm London time today.
Long Trade 1
Long trade if confirmed by H1 price action at 1.6596.
Stop loss 1 pip below swing low.
Move the stop loss to break even when the trade is 20 pips in profit.
Remove 50% of the position as profit at 1.6530 or when the stop loss has been moved to break even if that is later.
Long Trade 2
Long trade if confirmed by H1 price action at 1.6556.
Stop loss 1 pip below swing low.
Move the stop loss to break even when the trade is 25 pips in profit.
Remove 50% of the position as profit at 1.6590 or when the stop loss has been moved to break even if that is later.
GBP/USD Analysis
I wrote yesterday that the rise was probably going to slow and that is exactly what happened yesterday. We have been falling off from the high of 1.6680 all night. At the time of writing, we are starting to rise a little.
We still have some fairly weak residual bullish momentum, so it would be natural to get some kind of bounces from any good support levels below us should the price return there today. However, the bounces are likely to be relatively small and the support levels are fairly close by and the action is congested, so we need to take care. There are also two high-impact news events due today that could blow these levels out, so I am looking for candlestick confirmation before entering any of these trades.
The slight bullish residual momentum is good news as the levels near us are both support levels. We have 1.6596 first, happily confluent with a round number and also with the 200 EMA on the H4 chart. Below that there is 1.6556. These might be fairly weak levels, as they were produced by fairly weak action.
Things look bullish on the monthly and weekly time frames but yesterday printed a bearish candle.
We are still well within a long-term bullish channel.
Today at 9:30am London time we have UK Construction PMI data, followed later at 1:15pm by the US ADP Non-Farm Employment Change data. This means it is likely that today will see more active movement than occurred during the first days of this week.