Yesterday’s signals were not triggered as neither of the key levels identified were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 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 1.2133.
* 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 1.2346.
* 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
I wrote yesterday that it was looking as though should the price break below the support level of 1.2232, the outlook would remain bearish and the price would look to be heading for the next support at 1.2133. The level at 1.2232 broke down, which is bearish, but the price has not reached 1.2133 yet. The outlook is bearish on both the long and medium-term timeframes for this pair, but it should be remembered that as we get closer to 1.2000, this area has been a low over the past several months that is probably providing long-term buying and therefore support.
Concerning the GBP, the British Government will release its Annual Budget at 12:30pm London time. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change numbers at 1:15pm, followed by Crude Oil Inventories at 3:30pm.