Last Thursday’s signals were unfortunately not triggered as the price never quite touched the identified support level at 1.2133, coming to within half a pip of the price before turning bullish.
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 1.2250.
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 long-term trend is bearish, but the price just was not able to get below the key support level identified at 1.2133, so it eventually turned very bullish, at least over the short term, and may now test the nearest resistance which is confluent with a psychological level at 1.2250. This pair is following the lead of EUR/USD, and shows a similar Quasimodo / under and over bullish pattern which is in its final leg.
There is nothing due today concerning either the GBP or the USD.