Yesterday’s signals were not triggered as none of the key levels give were ever reached, although they have clearly worked well in containing the price so far.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trades
* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2772 or 1.2739.
* 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 1.2850 or 1.2610.
* 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 has again, for yet another consecutive day, remained within the area defined by 1.2850 and 1.2772. I wrote that an upwards move was likely yesterday after London opened and this is what happened. The bullish breakout which occurred on Tuesday last week remains significant, making a further upwards movement probable. The pair is in a clear long-term bullish trend, and may make a successful attempt at breaking above the key resistance at 1.2850 soon. However, the trading in the late Asian session is weakly suggestive that the resistance at 1.2850 will continue to hold.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.