GBP/USD Signal Update
Last Thursday’s signals expired without being triggered as although the price did hit 1.6738, the hourly chart did not print immediately confirmatory bullish price action.
Today’s GBP/USD Signals
Risk 0.75%
Entries must be made before 5pm London time today.
Long Trade 1
Go long after confirming bullish price action on the H1 chart following the first touch of 1.6748.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.6775.
Remove 25% of the position as profit at 1.6800 and leave the remainder of the position to run.
Short Trade 1
Go short after confirming bearish price action on the H1 chart following the first touch of 1.6864.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even when the price reaches 1.6830.
Take 50% of the position as profit at 1.6800 and the remainder at 1.6755.
GBP/USD Analysis
Last Thursday morning I predicted that “If we get a sharp rejection off a move down to the trend line and 1.6748, it could be an excellent buying opportunity.” We did in fact get this bounce but it was not sharp at all so would not have given us an entry. However the support was there and we have been moving up ever since, even while the heavily correlated EUR has failed to make much headway. Our forecast that the GBP uptrend was not over yet was proven to be correct.
The resistance at 1.6820 was broken on Friday, which was another bullish sign.
Overall then we should look for a continuation of the bullish trend now that we have had a bounce off the long-term trend line. A pull-back to the key level of 1.6750 would be an excellent position at which to look for a long trade. Above us we could take a conservative short if confirmed by price action at a rejection of the flipping level at 1.6864.
There are no high-impact news releases scheduled today concerning either the GBP or the USD, so this pair is likely to have a very quiet day.