Last Thursday’s signals were not triggered as none of the key levels were ever reached that day.
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 1.2232.
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 1.2346.
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
This pair had a stronger trend on all time frames towards the end of last week – a bearish one – when it was suddenly strongly bought right at the end of the week. The price has held up in trading this week, so far, but it is notable that it is having difficulty in breaking up past the handle at 1.2300. It is looking more and more as if that break will happen, and the price will test the next resistance level at 1.2346.
There is nothing due today concerning either the GBP or the USD.