GBP/USD Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 1.2577 or 1.2604.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2610 or 1.2548.
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 entry into the zone between 1.2738.
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 is proving to be in a reliable bullish trend run, and again advanced yesterday, breaking what should have been strong resistance around 1.2600. There is every sign it will continue to advance, but of course there are major news events for both sides coming up today and tomorrow. If the data supports the trend, we should expect further strong bullish movement.
Concerning the GBP, there will be a release of Construction PMI data at 9:30am London time, followed by the Bank of England’s Monetary Policy Summary and Official Bank Rate plus Votes at Noon London time, followed the usual press conference half an hour later. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.