Yesterday’s signals were not triggered as the price level of 1.2772 was never quite reached. However, if a long trade had been taken from that area, it still looks valid as at the time of writing.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am until 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 has again, for another consecutive day, remained within the area defined by 1.2850 and 1.2772. The bullish breakout of last Tuesday remains significant, making a further upwards movement probable. The pair is in a clear long-term bullish trend, but is looking increasingly likely that it will need to dip below 1.2772 before regaining enough steam to make a successful attempt at breaking above the key resistance at 1.2850. However, the trading in the late Asian session is suggesting an upwards move as London opens, at least over the short-term.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.