GBP/USD Signals Update
Yesterday’s signals expired without being triggered as the key prices were not reached during the London session as stipulated.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be made between 8am and 5pm London time only.
Long Trade 1
• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next test of 1.4853.
• Place the stop loss 1 pip below the local swing low.
• Adjust 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 ride.
GBP/USD Analysis
As forecast, yesterday was a wild ride, with the early poor GBP news pushing the price down near to 5 year lows. Later, the FOMC’s disappointment for USD bulls led to a very sharp and strong fall in the USD that manifested in this pair by pushing the price all the way up to 1.5150, so overall we had a 500 pip day which is quite a rare thing to see!
The problem with trading after these large moves is that technically the picture tends to be muddied and that is certainly the case in the area above the current price. However, there is more clarity below, where we can see an obvious flipping level at about 1.4850 that is quite likely to be supportive. Further below that, there is also a broken bearish trend line that just might come into play over the coming days, although it probably will not. Note how the old broken bullish trend line came to within just a few pips of holding yesterday’s high close to 1.5150.
There are no high-impact events scheduled today concerning the GBP. Regarding the USD, at 2pm London time there will be a release of Philly Fed Manufacturing Index data which may affect the USD.