GBP/USD Signal Update

Last Tuesday’s signals were not triggered as there was no bullish price action at 1.2300.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm London time today only.

Long Trade 1

• Go long following a convincing bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2100.

• Place the stop loss 1 pip above the local swing high.

• Adjust the stop loss to break even once the trade is 25 pips in profit.

• Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

Short Trade 1

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2308.

• Place the stop loss 1 pip above the local swing high.

• Adjust the stop loss to break even once the trade is 25 pips in profit.

• Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

GBP/USD Analysis

The pair continues to fall, and is in the middle of both long and short-term bearish trends which are strong. However, the pace of the decline is slowing down, and a recent low was made around the round number of 1.2100 at which there was a spurt of strong buying. If 1.2100 is tested again, it is going to be interesting to see what happens. Of course, the level at 1.2000 can be expected to be much more significant, if it is reached.

There is minor resistance at 1.2250, but the next real key level is around the round number at 1.2300.

I still maintain a bearish bias.

There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories at 4pm.