GBP/USD Signal Update
Last Thursday’s signals expired without being triggered.
Today’s GBP/USD Signals
Entries may be made only between 8am and 5pm London time today.
Long Trade 1
Go long with a buy limit order at the first touch of 1.6753.
Place a stop loss at 1.6713.
Adjust the stop loss to break even when the price reaches 1.6783.
Take 50% of the position as profit at 1.6810 and leave the remainder of the position to run.
Short Trade 1
Go short after confirming bearish price action on the H1 chart following a first touch of 1.6884.
Place a stop loss 1 pip above the local swing high.
Close the trade at 1.6830.
Nothing important happened over the Easter holiday and no crucial support or resistance has been tested or formed since my previous analysis last Thursday.
There is every sign that a bullish bias is the correct bias to take. We are still in the bullish channel and we have only been forming crucial support levels rather than crucial resistance. A candlestick analysis on all the higher time frames shows bullishness.
There is flipped resistance about 70 pips below us at 1.6753 which is quite likely to act as good support, and as there is not much news today I am prepared to go long there at a first touch during today’s London session.
Above us there is old flipped resistance from 2009 at 1.6884 that if confirmed by bearish price action might provide a conservative short.
My colleague Christopher Lewis is as bullish as me on this pair but I see crucial support as kicking in some way above his “floor” of 1.6500
There are no high-impact news releases due today concerning the GBP. At 3pm London time there is a release of US Existing Homes Sales data. It is likely to be a fairly quiet day.