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GBP/USD Signal Update

Last Thursday’s signal was not triggered as the price did not reach 1.6620 before 5pm that day.

Today’s GBP/USD Signals

Risk 0.75%.

Entry should be made only between 8am and 5pm London time today.

Long Trade 1

Long entry with a stop order at the next bar break of an H1 pin or engulfing bar after a bounce off 1.6620. Only take an entry at a price between 1.6620 and 1.6630. The trade will not be valid once an hourly bar closes below 1.6620.

Stop loss at 25 pips.

Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take 75% of the position as profit at 1.6695.

GBP/USD Analysis

My identifications of 1.6640 and 1.6620 as support last week were proven to be correct, although the support they have provided has been fairly weak and there is plenty of selling pressure above. Despite that, there has not been a single hourly close yet below 1.6620, so I am prepared to look for one more chance of a long trade off this level as long as that remains the case. Christopher Lewis sees support a little lower than I do, at a zone between 1.6500 and 1.6600.

There are no obvious flipped resistance levels above us so I do not have level at which to look for a short.

The next supportive level below 1.6620 is at 1.6475, which is a little too far from the current price to be taken seriously right now. It may come into play later this week, especially if 1.6620 is broken to the down side today or tomorrow.

Looking at the long-term picture, we have been in an uptrend since July last year and established within a well-defined bullish channel since November.

Although the recent action feels bearish, a candlestick analysis of the higher time frames indicates that this is only a weak and indecisive pull back, which suggests that the earlier bullishness should resume fairly soon.

GBPUSD Signal 22414

There are no important data releases today for either the GBP or the USD, and as it is also a Monday there is a good chance it will be a quiet day for this pair.

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