GBP/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.2570.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 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 1.2620 or 1.2597.
* Place the stop loss 1 pip below the local swing low.
* 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 1.2737.
* 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.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
GBP/USD Analysis
This pair has continued to be bullish, breaking up strongly past resistance and printing new support levels. The British pound is the stand-out currency of all the majors right now, rising strongly against both the USD and the Japanese Yen. I do not see any end to the bullish run just yet although much will depend upon the crucial British GDP data due this morning.
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 Unemployment Claims data at 1:30pm.