GBP/USD Signal Update
Yesterday’s signals expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75%.
Entries must be made before 5pm London time.
Short Trade
Go short following bearish price action on the H1 time frame following the first touch of 1.6893.
Place a stop loss one pip above the swing high.
Move the stop loss to break even when the price reaches 1.6850.
Remove 50% of the position as profit at 1.6850 and leave the remainder of the position to run.
GBP/USD Analysis
The resistance area at 1.6808 did hold yesterday but has been broken to the upside already this morning. The support at 1.6684 is really too far away to worry about. This just leaves us with potential resistance at the bearish trend line above us that is visible in the chart below, and the level at 1.6893.
Despite that, things look bullish right now. Yesterday’s candle was bullish and the overnight action has also been bullish. However we have so much high-impact news due today that it is really anyone’s guess where the price is going to go. The line of least resistance looks to be long so if the news releases are bullish for the GBP and bearish for the USD this is likely to produce the greatest effect.
There are several high-impact GBP-related events happening today. Firstly, at 9:30am London time, there will be Claimant Count Change and Average Earnings Index data releases. Later at 10:30am the Governor of the Bank of England will be speaking and releasing the Inflation Report. Regarding the USD, there are Retail Sales data due at 1:30pm London time. Therefore it is likely to be a very active day for this pair, especially before the New York session.