GBP/USD Signal Update
Last Thursday’s signals were not triggered as none of the key levels were reached during that session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2346.
Put 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 25 pips in profit and leave the remainder of the position to ride.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2511.
Put 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.
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
We have seen another strong rise following the price holding up after last week’s strong rise. The pair remains short-term bullish and increasingly, medium to long-term bullish also. There may be long-term buying going on.
It is always dangerous to pick a top in a relatively strong rally such as this, but the price is now approaching the 1.2500 area which might have a psychological impact and generate some profit taking, and a pause at least in the rise.
There is nothing of high importance due today concerning either the GBP or the USD.