Filed Under:
Forex pairs in this Article » GBP/USD
By: DailyForex.com

GBP/USD Signal Update

Last Thursday’s signals were not triggered and expired.

Today’s GBP/USD Signal

Risk 0.50%.

Entry should be made before 5pm London time today only.

Long Trade 1

Enter long with a stop buy order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.6235. The trade is invalidated once an hourly bar closes below this level.

Stop loss at the local swing low.

Move the stop loss to break even when the trade is 25 pips in profit and let it run.

Short Trade 1

Enter short with a stop sell order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.6475. The trade is invalidated once an hourly bar closes above this level.

Stop loss at the local swing low.

Move the stop loss to break even when the trade is 25 pips in profit and let it run

GBP/USD Analysis

The end of last week saw a bottoming out at around 1.6250 off the 50% Fibonacci retrace, and then the price began to move up. I thought it would come down a little lower and so was looking for a long trade at 1.6235. I would still take a long trade there.

Although we have carved out what looks to be a strong bottom, I am not as bullish as Christopher Lewis, and could see the price fall back after meeting the 23.6% Fibonacci level which has acted support before flipping to resistance. Additionally, that area at 1.6475 is today quite confluent with the broken bullish trend line, which should help by adding resistance pressure at the next retest. This combination makes me prepared to look at a short trade off 1.6475.

The short-term trend is up.

GBPUSD Signal 21014

There is no important news due today for either the GBP or the USD, so it is likely to be a quiet day.

comments powered by Disqus
Trading Center