GBP/USD Signals Update

Yesterday’s signals expired without being triggered as there was no bearish price action at 1.5544.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be made before 5pm London time today.

Short Trade 1

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.5673.

• Place 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 1.5605 and leave the remainder of the position to ride.

Long Trade 1

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5537.

• Place the stop loss 1 pip below the local swing low.

• 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 1.5670 and leave the remainder of the position to ride.

Long Trade 2

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5464.

• Place the stop loss 1 pip below the local swing low.

• 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 1.5670 and leave the remainder of the position to ride.

Long Trade 3

• Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5413.

• Place the stop loss 1 pip below the local swing low.

• 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 1.5463 and leave the remainder of the position to ride.

GBP/USD Analysis

There were a couple of bullish signs which occurred yesterday. We have confirmation that there is another crucial support level not far below the current price at 1.5464. The resistance at 1.5544 has also been broken to the upside and we now have flipped support below at around 1.5537. Additionally, down at 1.5514 we have a confluence of horizontal support and a long-term bullish trend line. So there is no doubt that there is plenty of support below.

However things still do not look like we are going to get a bullish break of 1.5673 before the FOMC announcement tomorrow at the earliest.

I expect that today will probably be an up day. Of course there is high-impact news on both sides of this pair due, so anything might happen, but I expect impact to be greater to the upside.

Concerning the GBP, there will be a release of Preliminary GDP data at 9:30am London time. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm.