Yesterday’s signals produced a profitable short trade following the bearish engulfing candle rejecting the resistance level at 1.2610. It would be a good idea to take partial at least profits if not done already.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before5pm 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 of1.2508.
- 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 of1.2610.
- 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.
- Remove50% 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 bullishness continued over recent days, but there was a significant reversal at the anticipated resistance level of 1.2610. It looks quite possible that we will now see a deeper pull back to about 1.2508 where the confluence of support plus a bullish trend line would be likely to push the price up again, possibly for another retest of 1.2610.
At present, the action is already indicative of an upwards movement during the London session, however.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of CB Consumer Confidence data at 2pm London time.