GBP/USD Signal Update
Yesterday’s signals produced a losing long trade from the bullish pin candle rejecting the supportive level I had identified at 1.2100.
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 bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2219.
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 Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2388.
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
Yesterday the price initially fell to a level not far from 1.2000 and was looking very bearish, as though it was most likely to continue down below that level and make new all-time lows. However, Trump’s press conference during the New York session completely sank the USD and has sent this pair moving upwards quite strongly. In fact, the price is now at a level higher than it was 3 months ago, and this is the first time that has happened with a GBP currency pair since Brexit, suggesting that the long-term bearish trend may be over.
It should be noted though that the GBP is one of the lesser gainers against the USD since yesterday.
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.