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

GBP/USD Signal Update



Yesterday’s signals were not triggered and expired. The price did reach the expected support level of 1.6325, but failed to print a pin or engulfing bar on its first rebound.

Today’s GBP/USD Signal

Risk 0.50%.

Entry should be made between 8am and 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 long with a stop sell order at a next bar break of an hourly pin or engulfing bar after a first touch and rejection of 1.6325. The trade is invalidated once an hourly bar closes above this level.

Stop loss at the local swing high.

Move the stop loss to break even when the trade is 25 pips in profit and let it run. Take 50% of the profit at 1.6250.

GBP/USD Analysis

Yesterday we finally broke down through the lower trend line of the long-term bullish channel we had been established in during the last three months. It is probable that the previous support level of 1.6325, which did give a small bounce yesterday, will now act as resistance. Below is a likely supportive level at 1.6235 which is quite confluent with the 50% Fibonacci retracement of the recent upwards move (which we already hit earlier this morning), and today’s GMT S1 pivot point. The 1.6235 has acted as long-term resistance and was very supportive when last hit. It was also a weekly open price when it was last supportive.

GBPUSD Signal 2414

There is important news due today for the GBP at 9:30am London time (Construction PMI), but nothing for the USD.

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