GBP/USD Signals Update

Last Thursday’s signals expired without being triggered.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be taken between 8am and 5pm London time today.

Long Trade 1

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.4225.

* Put the stop loss 1 pip above the local swing high.

* Move the stop loss to break even once the trade is 25 pips in profit.

* Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.

Short Trade 1

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.4350.

* Put the stop loss 1 pip above the local swing high.

* Move the stop loss to break even once the trade is 25 pips in profit.

* Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.

GBP/USD Analysis

This is one of the most strongly trending pairs. It continues to make new 5 year lows almost every day. The GBP is very weak and the USD is one of the stronger currencies. For these reasons I would be extremely careful in taking any long trades but the level at 1.4225 is a long-term swing low which may provide some support at least temporarily.

Above, the previous support at 1.4350 looks attractive now as probable resistance but a pull back to the round number at 1.4300 might be enough to trigger another sharp fall.

 

There is nothing due today concerning the GBP. Regarding the USD, it is a public holiday in the USA today.