GBP/USD Signals Update
Yesterday’s signal was not triggered as the price never reached 1.5427.
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 1.5350.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 30 pips in profit.
Remove 50% of the position as profit at 1.5210 and leave the remainder of the position to run to 1.5120.
I had forecast yesterday that this pair was in danger of breaking down past the crucial support zone from 1.5350 if the first hour of the London session was unable to give the price a good push up. This is what happened and the price did break down and fell almost all the way to the next whole number at 1.5200. That has called the recent GBP bullishness into serious question and it seems that the USD is the only real strong currency that is holding up right now.
That leaves this pair in something of a no-man’s land now. It would seem likely that 1.5350 will now become serious resistance so that would be an obvious level at which to seek to get short off a bearish reversal. Support below is less obvious. There will probably be minor support at the whole number of 1.5200 and there does seem to be stronger support waiting at 1.5100 which is too far away to be concerned with right now.
There are high-impact events scheduled for both the GBP and the USD today. Regarding the GBP, there will be a release of the Official Bank Rate and the MPC Rate Statement at Noon London time. Concerning the USD, there will be a release of Unemployment Claims data later at 1:30pm.