GBP/USD Signals Update
Yesterday’s signals were not triggered and expired, as although the price did reach 1.5591, there was no bearish price action there to justify a short trade.
Today’s GBP/USD Signals
Trades may only be taken between 8am and 5pm London time.
Short Trade 1
Short entry after bearish price action on the H1 time frame immediately following the next touch of 1.5789.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 25 pips in profit.
Take off 50% of the position as profit when the trade is 25 pips in profit and leave the remainder of the position to run.
The market is very active, as although we had no major news yesterday and it was a Monday, this pair has still managed to move up 140 pips or so, well above its weekly open and against the long-term trend.
In early trading today, we have broken above a fairly long-term trend line. This is a bullish sign, although it remains to be seen whether we will stay above the line. It should also be remembered that trend lines are not so very effective as a method of analysing this pair, whose movements are determined more by momentum and horizontal levels than mobile support and resistance.
There are local previous swing highs above us, but there are no good flipped levels anywhere nearby until we get to 1.5789. We will need to have a pretty strongly bullish day to get there, but it is a solid level and should cap any bullish move and provide an opportunity to get short with the long-term trend.
My colleague Christopher Lewis is looking for opportunities to get short, a little earlier than I am.
Regarding the GBP, there will be a release of U.K. Manufacturing Production data at 9:30am London time. There are no high-impact data releases scheduled today directly concerning USD.