GBP/USD Signals Update
Yesterday’s signals would have produced a losing trade as there was a bullish inside bar bouncing off 1.5434. This did ultimately provide a move up of about 40 pips, but the stop had already been triggered by that point.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of the broken bearish channel trend line currently sitting at around 1.5365.
- Put the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 25 pips in profit.
- Remove 50% of the position as profit when the price reaches 1.5560 and leave the remainder of the position to run.
Short Trade 2
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5365
- Put the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is 25 pips in profit.
- Remove 50% of the position as profit when the price reaches 1.5560 and leave the remainder of the position to run.
GBP/USD Analysis
Until yesterday, the GBP was holding up with some stiffness against the resurgent USD. However that all changed yesterday as the price fell very sharply from 1.5600, breaking out bearishly beyond the bearish channel. At one point this pair was making the largest move of the day. The price is falling again now as London opens below yesterday’s low.
We should normally expect a FOMC day such as today to be very quiet but with the spooked markets over Greece and China, we could see quite a lot of activity. Although there are possibly supportive levels below, in this environment I do not see anything that looks really good until we get below 1.5200. Another sharp fall would not be surprising. For these reasons I would look for short trades off a return to the trend line or flipped support to resistance level above.
Regarding the GBP, at 12:30pm London time there will be the U.K.’s Annual Budget Release. At 7pm London time there will be a release of the FOMC Meeting Minutes.