GBP/USD Signals Update
Last Thursday’s signals expired without being triggered.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5674.
- 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.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5466.
- Put 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.
- Remove 50% of the position as profit when the price reaches 1.5550 and leave the remainder of the position to run.
GBP/USD Analysis
The GBP began to recover towards the end of last week just as it if it looked as if could fall much further. To a large extent, the currency is being dragged along in the wake of the Euro, with which it is highly positively correlated.
The turnaround has seen this pair print 2 new flipped support levels. If it can break above the pseudo-bearish trend line shown in the chart below, it will have really effected a trend change from bearish to bullish. As this line has had only one touch, I am not prepared to look to it as resistance yet. The next really good resistance level is not until 1.5674.
The fact that in early pre-London trading the price is breaking above the resistance level at 1.5531 is a bullish sign.
There is nothing due today regarding the either the GBP or the USD.