By: DailyForex.com

GBP/USD Signal Update

Yesterday’s signal expired without being triggered as the price never reached 1.6914.

Today’s GBP/USD Signal

Risk 0.75%.

Entries must be made prior to 5pm London time today.

Long Trade 1

Go long at the first touch of 1.6914.

Put a stop loss at 1.6870.

Adjust the stop loss to break even when the price reaches 1.6990.

Remove 75% of the position as profit at 1.6990 and leave the remainder of the position to ride.

GBP/USD Analysis

Yesterday the daily chart printed a very indecisive doji. The price barely broke the low of the previous day, but 1.7000 held, and we are currently ranging between that local support level and the resistance zone above at around 1.7050.

It is still hard to say what will happen next but this pair has certainly been going up in recent months so overall bias should be bullish. Of course there will also be good short opportunities.

The longer we go without falling down to 1.6914, the stronger that support level should become. Today it is becoming confluent with a very old, long-term trend line that has acted as both support and resistance, so it looks like this would be a good opportunity today or tomorrow.

We are a long way away from 1.6914 so I would be prepared to take a touch trade there. It is unlikely however that we will reach that level during the London session today.

GBPUSD 62414

Today at 9:30am London time there are Inflation Report Hearings, which might affect the GBP. Later at 3pm there will be a release of US CB Consumer Confidence and New Home Sales data, which may affect the USD. It should be a livelier day today for this pair than yesterday.

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