GBP/USD Signal Update
Last Thursday’s signals produced a losing long trade following the bullish pin candle rejecting the identified support level at 1.2548.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2416 or 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 Trades
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2561 or 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
Over the past few weeks it had seemed as if a new upwards trend was beginning. This now seems to be in doubt at the move up ran out of steam following the Bank of England’s report last week. The price is now close to its level of 3 months ago, and if it drops below 1.2450 would technically be in a full long-term downwards trend again.
I see this pair as dangerous to trade right now, it looks unpredictable and likely to range.
There is nothing due today concerning either the GBP or the USD.