GBP/USD Signal Update
Yesterday’s signals expired without being triggered as the price never hit either 1.6684 or 1.6914.
Today’s GBP/USD Signals
Entries must be taken before 5pm London time today.
Long Trade 1
Go long after bullish price action on the H1 time frame following a first touch of 1.6684.
Place a stop loss 1 pip below the local swing low.
Move the stop loss to break even when the price reaches 1.6740.
Remove 75% of the position as profit at 1.6740 and leave the remainder of the position to ride.
Short Trade 1
Go short at the first touch of 1.6914.
Place a stop loss at 1.6944.
Move the stop loss to break even when the price reaches 1.6850.
Remove 50% of the position as profit at 1.6850 and leave the remainder of the position to run.
The pair is in an interesting position now. A resistance level at 1.6781 has been flipped to support, holding yesterday as it did at the end of last week. However above us we have a bearish trend line that has held for about one month. As I wrote yesterday, the daily high was in fact no higher than 1.6838. The flipping from resistance to support suggests a bullish move is coming, as does the fact that we are not retreating down from the trend line quickly. Unfortunately as yesterday was very slow, it is difficult to draw firm conclusions.
It does seem likely we are going to get some kind of breakout and the signs are that it will be bullish. If the news due at 9:30am London time is very bullish for the GBP, we should get a meaningful move upwards. It seems there is going to be more support than resistance.
It is unlikely we will get past 1.6873 today. If we do, there should be a great opportunity for a short touch trade at 1.6914. Below us there should be good support at 1.6684.
I would not look to take a long off 1.6781 today as it has been touched too often too recently to look strong, but it could be good for a quick scalp this morning before the news if that is your style of trading.
There are no high-impact news events scheduled for today concerning the USD. At 9:30am London time there will be a release of U.K. Manufacturing Production data which may impact the GBP. It is likely to be a relatively quiet day for this pair.