GBP/USD Signals Update
Yesterday’s signals expired without being triggered as there was no bullish price action at 1.4225.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4087.
* Put the stop loss 1 pip above the local swing high.
* Move the stop loss to break even once the trade is 25 pips in profit.
* Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
Short Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4236.
* Put the stop loss 1 pip above the local swing high.
* Move the stop loss to break even once the trade is 25 pips in profit.
* Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.
GBP/USD Analysis
After rising quite close to the anticipated resistance at 1.4350, this pair fell sharply and made another new 5 year low yesterday following dovish comments by the Governor of the Bank of England which signalled no tightening of monetary policy is going to happen any time soon. The only obvious point to look for a short entry would be at the previous floor above at 1.4236.Below there are a number of monthly lows where we can expect support to occur, the nearest being 1.4087. We can also expect the round number at 1.4000 might be significant psychologically. However the overall bias must remain very bearish.
Regarding the GBP, there will be a release of Average Earnings Index and Claimant Count Change data at 9:30am London time. Concerning the USD, there will be releases of Building Permits and CPI data at 1:30pm, followed later by Crude Oil Inventories at 3:30pm.