Last Thursday’s signals were not triggered as unfortunately the price never quite reached the resistance level identified at 1.2374.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trade 1
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2324.
* 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 1.2508.
* 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
Last Thursday I was looking ahead to the forthcoming breakout from the short-term narrowing triangle, within which the price had been consolidating. The breakout did come, starting even before the NFP release on Friday, but the breakout was a downwards movement. This leaves the price just above its level from 3 months back but looking bearish over the longer-term: in other words, very uncertain and hard to predict. In fact, the longer-term charts show the price right in the middle of a large, long-term consolidating triangle. This is likely to mean that there will be better trading opportunities elsewhere over the short-term.
There is nothing due today regarding the GBP. Concerning the USD, the Chair of the Federal Reserve will be speaking at a conference at 9:10pm London time.