Yesterday’s signals produced a profitable long trade following the bullish doji-type hourly candle rejecting the support level identified at 1.2436. It is probably a good idea to take partial profit or move the stop loss to break even.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2436 or 1.2374.
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 1.2610.
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 continues upwards with a lot of bullish momentum since there have been increasing signs of a British rate hike, although the longer-term charts are not clearly suggesting further price rises. The price is above its level of 3 months ago, and new support levels are holding firm, which are usually signs of the prevailing direction with this pair. However, the 1.2500 level may provide some minor resistance and halt the advance for a day or two.
There is data due today for both sides of this pair which could have an unpredictable impact.
Regarding the GBP, there will be a release of Retail Sales data at 9:30am London time. Concerning the USD, there will be a release of Unemployment Claims at 2:30pm, followed 15 minutes later by a speech from the Chair of the U.S. Federal Reserve.