By: DailyForex.com

GBP/USD Signals Update

Last Thursday’s signals were not triggered as the price did not reach 1.6550 or 1.6655 that day.

Today’s GBP/USD Signals

Risk 0.75%.

Entries before 5pm London time today only.

Long Trade

Go long following bullish price action on the H1 time frame after the first touch of 1.6500.

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

Move the stop loss to break even when the price reaches 1.6550.

Take off 75% of the position as profit at 1.6550 and leave the remainder of the position to run.

Short Trade 1

Go short following bearish price action on the H1 time frame after the first touch of 1.6655.

Place a stop loss 1 pip above the local swing high.

Move the stop loss to break even when the price reaches 1.6600.

Take off 50% of the position as profit at 1.6600, half of the remainder at 1.6550, and then leave the rest of the position to run.

Short Trade 2

Go short following a strong lower high after the price exceeds 1.6598.

Place a stop loss 1 pip above the local swing high.

Take off 75% of the position when profit is twice risk and leave the remainder to run.

GBP/USD Analysis

The strong downwards trend has continued. The USD is very strong and the GBP has recently weakened and that has obviously resulted in this pair falling sharply.

Yesterday was a public holiday in the U.K. so was fairly quiet. It is notable that the support at 1.6550 did hold in spite of the price opening just below that level this week, and not surprising that the banks tried their usual trick of getting the price to gap down below such support over the weekend. The gap has been filled and we have just seen a slight strengthening of the GBP.

It currently looks like the best trade will be waiting for a pullback to around the 1.6600 – 1.6650 area, from which the price is quite likely to fall again.

GBPUSD 82614

There are no high-impact data releases due today concerning the EUR. Regarding the USD, at 1:30pm London time there will be a release of Core Durable Goods data, followed by CB Consumer Confidence at 3pm, both of which are likely to affect the USD. This pair is likely to be more active during the New York session.

Related Articles
  1. Economics

    Is a Recession Coming?

    In the space of a week, the VIX Index, a measure of market volatility, spiked from 13, suggesting extreme complacency, to over 50, evidencing total panic.
  2. Technical Indicators

    Use Market Volume Data to Determine a Bottom

    Market bottoms often carve out classic volume patterns that let observant traders make fast and accurate calls.
  3. Forex Strategies

    These Are The Best Hours To Trade the Euro

    Six popular currency pairs and numerous secondary crosses offer euro traders a wide variety of short- and long-term opportunities.
  4. Professionals

    Tips on Building a Resume for a Private Equity Job

    Trying to land a job in the coveted private equity sector? Ensure your resume meets the stringent PE job requirements with these important tips.
  5. Savings

    Best Places to Exchange Currency in Chicago

    Whether you're leaving the Windy City or arriving with a stack of foreign cash, these are your best bets for currency exchange.
  6. Mutual Funds & ETFs

    ETF Analysis: United States Brent Oil Fund

    Learn more about the United States Brent Oil exchange-traded fund, the characteristics of the fund and the suitability and recommendations of it.
  7. Mutual Funds & ETFs

    ETF Analysis: ProShares Ultra Bloomberg Crude Oil

    Find out more about the ProShares Ultra Bloomberg Crude Oil ETF, the characteristics of UCO and the suitability and recommendations of UCO for investors.
  8. Credit & Loans

    5 Signs a Reverse Mortgage Is a Bad Idea

    Here are the key situations when you should probably pass on this type of home loan.
  9. Stock Analysis

    Fortinet: A Great Play on Cybersecurity

    Discover how a healthy product mix, large-business deal growth and the boom of the cybersecurity industry are all driving Fortinet profits.
  10. Stock Analysis

    2 Catalysts Driving Intrexon to All-Time Highs

    Examine some of the main reasons for Intrexon stock tripling in price between 2014 and 2015, and consider the company's future prospects.
RELATED TERMS
  1. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s ...
  2. Theta

    A measure of the rate of decline in the value of an option due ...
  3. Record Date

    The cut-off date established by a company in order to determine ...
  4. Supply

    A fundamental economic concept that describes the total amount ...
  5. Purchasing Power

    The value of a currency expressed in terms of the amount of goods ...
  6. Investment Banker

    Someone working at an institution raising capital for companies, ...
RELATED FAQS
  1. Can my IRA be garnished for child support?

    Though some states protect IRA savings from garnishment of any kind, most states lift this exemption in cases where the account ... Read Full Answer >>
  2. Why is my 401(k) not FDIC-Insured?

    401(k) plans are not FDIC-insured because they are typically composed of investments rather than deposits. The Federal Deposit ... Read Full Answer >>
  3. Can I use my IRA savings to start my own savings?

    While there is no legal reason why you cannot withdraw funds from your IRA to start a traditional savings account, it is ... Read Full Answer >>
  4. Can creditors garnish my IRA?

    Depending on the state where you live, your IRA may be garnished by a number of creditors. Unlike 401(k) plans or other qualified ... Read Full Answer >>
  5. Is Japan an emerging market economy?

    Japan is not an emerging market economy. Emerging market economies are characterized by low per capita incomes, poor infrastructure ... Read Full Answer >>
  6. How does an IRA grow over time?

    Individual retirement account, or IRA, growth depends on many factors, including what types of investments are included in ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!