GBP/USD Signals Update

Yesterday’s signals were not triggered.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades must be entered between 8am and 5pm London time today only.

Long Trades

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3050 or 1.3000.

• 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 25 pips in profit and leave the remainder of the position to ride.

Short Trade 1

• Go short following a bearish price action reversal on the H1 time frame immediately upon the next entry into the zone between 1.3267 and of 1.3300.

• 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 25 pips in profit and leave the remainder of the position to ride.

GBP/USD Analysis

We have a small flag developing (marked in the chart below) that is not yet mature. It probably needs another tap on one of the trend lines before breaking out.

A bullish breakout would suggest another move up to the resistant area above below 1.3300. I think this is the more likely scenario as we seem to have a fair amount of buying below the flag, with two recent U-shaped bottoms just above the identified support level at 1.3050.

(Click on image to enlarge)

There is nothing due today concerning the GBP. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.