GBP/USD Signals Update
Last Wednesday’s signal to go short following bearish price action at resistance at 1.5606 gave a trade entry. This produced only a small profit if taken in accordance with the given trade management rules, but if allowed to run would now be in profit by approximately 260 pips.
Today’s GBP/USD Signals
No signal is given today.
The pair made a sharp move down last Friday as the market opened for the New Year, driven mainly by weakness in the EUR which had a knock-on effect on the GBP. When the market opened last night with a gap down the price then fell very quickly to make a new near two year low, before rebounding quickly. This suggests that we will probably see a choppy week as the price struggles to find its level. The size of the space from the beginning of the drop on Friday to the low that was made last night is quite large. When these sudden moves happen, especially at the beginning of a new month or year, they tend to precede choppy period. That is not to say the strong USD trend is necessarily going to end.
There is no obvious resistance before 1.5484 and we are currently quite far from this price, as we also are from the support below at 1.5128.
There is a high-impact data release scheduled today concerning the GBP, but nothing regarding the USD. At 9:30am London time, there will be a release of U.K. Construction CPI data.