Yesterday’s signals produced a profitable bullish long trade from the pin candle rejecting the identified support level at 1.2133.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Protect all open trades by 5:30pm.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2139.
* 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 1.2250.
* 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
The price fell very sharply yesterday just before the London open, breaking below the support level at 1.2133 in line with the long-term bearish trend. However, the price eventually recovered to rise, and shot up during the subsequent late Asian session to test 1.2250. This pair stands out as volatile right now, but 1.2250 should hold until the FOMC release due later.
Regarding the GBP, there will be releases of Average Earnings Index and Claimant Count Change data at 9:30am London time. Concerning the USD, there will a release of CPI and Retail Sales data at 12:30pm, followed by Crude Oil Inventories at 2:30pm and the FOMC Statement, Economic Projections and Federal Funds Rate at 6pm, and then the usual press conference half an hour later.