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

GBP/USD Signal Update

Last Thursday’s signals were not triggered and expired. The price did reach 1.6619 but failed to form a bearish engulfing or pin bar before breaking up above it.

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 1.6450.

Stop loss at the local swing low.

Move the stop loss to break even when the trade is 25 pips in profit and take half the position as profit at 1.6520.

GBP/USD Analysis

The price managed to break up above the resistance at 1.6619, stayed above there for a few hours and then fell sharply from a new multi-year high of 1.6667 on Friday. This morning the price has been rising but at one point was only about 25 pips from the key support level of 1.6450, which flipped from resistance to support last Wednesday.

The overall bias should still be long as we are still established in a narrowing bullish channel that has been intact since last summer, as can be seen from the daily chart below:

GBPUSD Daily 12714

After such a strong breakout, and as 1.6450 has already flipped from resistance to support, it seems advisable to look for a long off a return to 1.6450. , which is very confluent with today’s GMY daily S1 pivot point at 1.3644. There may be a good resistance level above 1.6650, but I would not be looking for a short from there just yet.

GBPUSD H1 12714

There is no important news due today for the GBP but there is for the USD: U.S. New Home Sales at 3pm London time.

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