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GBP/USD Signal Update

Yesterday’s signals were not triggered and expired. The price did reach the expected resistance 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 short with a limit sell order at the first touch of 1.6475.

Stop loss at 1.6525

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 1.6375.

GBP/USD Analysis

Yesterday was a quiet day, printing a weak bullish pin bar on the daily chart. We found some support this week at the 50% Fibonacci retrace of the move up at 1.6260. We have decisively broken through the bullish trend line and so if we do not start rising quickly we will probably continue to descend for a while.

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, and today’s GMT S2 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.

Above us the closest significant resistance is at 1.6475 which I look to for a short touch trade as we are more than a typical day’s range away from that price. It flipped from support to resistance last week and is also confluent with a minor Fibonacci level (23.6%) from the recent move up:

GBPUSD Signal 2514

There is important news due today during the London session for the GBP at 9:30am London time (Services PMI). Concerning the USD, there is the Non-Farm Employment Change at 1:15pm, followed by ISM Non-Manufacturing PMI at 3pm, so this pair should be more active today than it was yesterday.

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