Yesterday’s signals were not triggered as unfortunately the low was just a few pips short of 1.2372, and because there was no bearish price action at 1.2436.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 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 1.2374, 1.2324 or 1.2250.
* 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 Trades
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2470 or 1.2508.
* 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 bottomed out yesterday when it hit a supportive trend line which had not been touched for a few days. Unfortunately, the low I identified was missed by a few pips before the price made a new short-term bullish trend line and started to move up again, although in the process a new resistance level was confirmed at 1.2470. It does not look as if the price is going to make a significant move today, and the bullish trend does seem about to continue over the short term. It is hard to say what will happen next.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Final GDP and Unemployment Claims data at 12:30pm London time.