GBP/USD Signal Update
Yesterday’s signal was not triggered and expired as the price never reached 1.7048.
Today’s GBP/USD Signals
• Risk 0.75%.
• Entries only before 5pm London time today.
Long Trade 1
• Go long following bullish price action on the H1 time frame after the first touch of 1.7048.
• Place a stop loss 1 pip below the local swing low.
• Move the stop loss to break even when the price reaches 1.7090.
• Take off 75% of the position as profit at 1.7090 and leave the remainder of the position to run.
Nothing much happened yesterday, even after the FOMC minutes were released towards the end of the New York session.
Although this pair is in a long-term uptrend and looks very bullish, there have been indications lately from the daily chart’s candlesticks that we are forming a top and can expect some kind of pull back. The area at around 1.7050 would be a logical target.
Having said that, we have been stuck in a range lately, with the price being unable to really break above 1.7165 or break below 1.7100. This is not surprising as we have been awaiting major GBP data, which is due out shortly. Whether the data is surprising or not, this might be the cue the market needs to be able to move beyond either level.
I have a long bias so am only looking for a long trade following a pull back to 1.7048. Should that level break down, we could be due for a fall all the way to the bullish trend line which is now at around 1.6987.
We have major GBP-related data releases scheduled for Noon today London time: the Official Bank Rate, the Asset Purchase Facility, and the MPC Rate Statement. If there are any surprises here it should affect this pair considerably. Trading is likely to be quiet beforehand. Regarding the USD, there will be a release of US Unemployment Claims data at 1:30pm, which might affect the USD. This pair is likely to have an active day today.