Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered from 8am to 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 1.2610.
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
This pair is really becoming very established within a range bounded by 1.2350 and 1.2610, with the centre of gravity at the psychologically key level of 1.2500. Having said that, there is a slight bearish bias, emphasised by the break of the supportive trend line shown in the chart below, and the long-term trend is bearish insofar as the price is below its levels from 3 months and 6 months
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There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.