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 1.2346.
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 1.2400 or 1.2471.
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
There are signs now that the pair may be set to break down below its medium-term range bounded by 1.2350 and 1.2610, with renewed strength in the U.S. Dollar. Alternatively, support around 1.2350 may provide a good long trade entry opportunity if the range becomes re-established, the centre of gravity at 1.2500 possibly attracting the price to move back up.
The long-term trend is bearish, so if you want to trade with the trend, focus on short trades.
Concerning the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm, followed by Crude Oil Inventories at 3:30pm.