GBP/USD Signals Update
Yesterday’s signal was not triggered as the price never reached 1.5416.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time only.
Short Trade 1
Go short after bearish price action on the H1 time frame immediately following the next touch of the bearish trend line currently sitting at 1.5427.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 30 pips in profit.
Take off 50% of the position as profit at 1.5350 and leave the remainder of the position to run to 1.5120.
Yesterday’s forecast saw the picture as muddied as the price seemed to be stuck between a potentially bearish broken trend line above and a key supportive level below at 1.5350. The support below is actually more of a zone that stretches down to around 1.5300. My colleague Christopher Lewis also sees this area as very crucial. We did break down into that zone but in early trading this morning the support is holding. If by 9am London time the price is above 1.5380 or thereabouts it is likely to continue up to 1.5425. However not far past that price we will run into that broken trend line, which could be the catalyst for a reversal and a short move back down to at least 1.5350.
If we break convincingly beyond that trend line, it will be a very bullish sign for the GBP and suggest a move back up to 1.5550 and possibly beyond that.
There are no high-impact events scheduled for both the GBP and the USD today. Regarding the GBP, there will be a release of U.K. Services PMI data at 9:30am London time. Concerning the USD, the ADP Non-Farm Employment Change will be released at 1:15pm, followed later by ISM Non-Manufacturing PMI data at 3pm.