Yesterday’s signals produced a losing long trade following the bullish rejection of the support level at 1.2374 with a pin candle on the hourly chart
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trade 1
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2324.
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 Trade 1
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2478.
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
The Pound had a very bullish rise over recent days but has started to show signs of breaking down here. The price is currently testing support flipped to resistance confluent with a trend line at 1.2374, and may fall significantly from here. Much will depend upon the reaction at the London open and the CPI data shortly after that.
There is nothing due today regarding the USD. Concerning the GBP, there will be a release of CPI data at 9:30am London time.