GBP/USD Signals Update
Yesterday’s signals were not triggered as there was no bearish price action at either of the resistance levels reached during the London session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3371 or 1.3346.
* 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 25 pips in profit and leave the remainder of the position to run.
Short Trades
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3478 or 1.3534.
* 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 25 pips in profit and leave the remainder of the position to run.
GBP/USD Analysis
The Pound was not the biggest gainer, but the bullishness in the Pound was finally matched by a weakness in the USD yesterday following a very disappointing U.S. economic data release. This pushed the price up well above the key resistance zone from 1.3346 to 1.3371 which may now be expected to flip to support.
Although this pair is still below its historical prices of 3 and 6 months ago, it does look attractive for long trades, as it has broken past some key swing highs and has had a real bid in it over the past couple of weeks or so.
If the U.K. data release this morning is as good or better than expected, there should be a further healthy rise.
There is nothing due today concerning the USD. Regarding the GBP, there will be a release of Manufacturing Production data at 9:30am London time, followed later by Inflation Report Hearings at 2:15pm.