Last Thursday’s signals produced a profitable short trade following the bearish inside bar break on the hourly chart rejecting the resistance level identified at 1.2508.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 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 1.2508.
* 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 1.2470 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
This pair should be interesting to traders now. It is showing some bullish momentum and is above its level of 3 months back, after spending a lot of time at historically very low prices.
The supportive trend line was pushing the price up, reluctantly, and after it initially seemed as if the price would be held by resistance just above 1.2500, the price was later able to break and hold up above that level, which may now become support. The action suggests the pair is likely to attempt a retest of the key resistance at 1.2610 which is becoming confluent with a long-term resistant trend, and so it might become a very pivotal area.
Regarding the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. Concerning the USD, there will be a release of ISM Manufacturing data at 3pm.