GBP/USD Signal Update
Last Thursday’s signals expired without being triggered.
Today’s GBP/USD Signals
• Risk 0.75%.
• Entries must be made between 8am and 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 off75% of the position as profit at 1.7090 and leave the remainder of the position to run.
I wrote last Wednesday that we seem to have been forming a top, but that we are also stuck in a range between about 1.7100 and 1.7160. Nothing changed on Thursday and Friday as we remained within this range, although we did print a couple of fairly bearish candles that fit within the topping pattern. Therefore, it looks like the next short-term move for this pair will be down.
In spite of that, there should be some long-term bullishness left in this pair, but the USD is strengthening across the board which supports the case for a pull back. This is probably not the best currency to short against the USD, however.
There is still likely support at 1.7048 and I will be looking for a long trade there if it is confirmed with price action. It would not be surprising if we get a fairly fast fall down to that level, but there is no news due today so it might not happen just yet.
There are no high-impact data releases scheduled for today concerning the GBP or USD during the London session. Therefore it is likely to be a very quiet day.