Yesterday’s signals produced a profitable short trade following the bearish outside candle on the hourly chart rejecting the key resistance level at 1.2850.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trades
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2772 or 1.2739.
* 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 Trades
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2850 or 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 did not do much yesterday, but has again risen during the Asian and early London sessions, although it is starting to look as if the short-term bullish move has run out of steam. The bullish breakout of two days ago remains significant, making a further upwards movement probable. The pair is in a clear long-term bullish trend.
Concerning the USD, there will be releases of Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time, followed later by the Treasury Secretary speaking at 6:15pm. Regarding the GBP, the Governor of the Bank of England will be speaking at a conference at 4:30pm and at 5:30pm.