By: DailyForex.com

GBP/USD Signal Update

Yesterday’s signal was not triggered and expired as the price never reached 1.6893.

Today’s GBP/USD Signals

Risk 0.75%.

Entries may only be made between 8am and 5pm London time today.

Long Trade

Long entry following bullish price action on the H1 time frame after the first touch of 1.6623.

Put a stop loss 1 pip below the local swing low.

Adjust the stop loss to break even when the price reaches 1.6650.

Remove 75% of the position as profit at 1.6650 and leave the remainder of the position to run.

GBP/USD Analysis

Yesterday’s news was very bearish for the GBP, producing a sharp fall in this pair and even more so in GBP crosses. The GBP is very weak now and its strong downwards trend has been given fresh impetus.

We did not reach the resistance yesterday at 1.6893, but the high before the sharp move down was made very close to the bearish trend line that I highlighted. This trend line is likely to become significant in the future as an area at which to take another short trade.

We reached a key support level at 1.6684 yesterday and within the new bearishness it seems to have completely lost any significance. The next key support level is at 1.6623 from where a long may be possible, but in this bearish environment it will be important to be very cautious.

GBPUSD 81414

There are no high-impact data releases due today concerning the GBP. Regarding the USD, there are Unemployment Claims data due at 1:30pm London time. Therefore it is likely that we will have a quiet London session before New York opens, when things should get livelier.

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