GBP/USD Signals Update
Yesterday’s signals were not triggered as there was insufficiently bullish price action at 1.2879.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be made between 8am and 5pm London time today only.
Long Trades
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2879 or 1.2850.
* Place 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 Trades
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3023 or 1.2940.
* Place 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
The strong downwards trend in this pair continues, providing trading opportunities. The move is capped by a long-term descending trend line marked in the chart below.
The price has found some support below 1.2879 which is not a surprise as we knew there was a zone of probable support there.
The price rose during the Asian session but as at the time of writing may have begun to fall again. There is new flipped support to resistance above at 1.2940.
Short trades remain the best bet in line with the longer-term trends, but beware of the supportive area below which may hold. We are approaching the area of multi-decade lows.
Concerning the GBP, there will be a release of CPI data at 9:30am London time. Regarding the USD, there will be releases of Building Permits and CPI numbers at 1:30pm.