Yesterday’s signals were not triggered as neither of the key levels were ever reached.
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 1.2374.
* 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 Trade 1
* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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
The price of this pair was extremely flat and consolidative yesterday, hardly moving at all. What is technically significant is that the supportive bullish trend line has held the price so far, which is resting closely on it.
It is very hard to say what will happen next ahead of the FOMC release, the price is in a consolidation within a consolidation. However, it looks as if bulls have a slight edge, do if the FOMC is negative for the Dollar, we can probably expect a stronger bullish move than the converse bearish move if the outlook were reversed.
Regarding the GBP, there will be a release of Services PMI data at 9:30am London time. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm, followed at 3pm by ISM Non-Manufacturing PMI and Crude Oil Inventories half an hour later. Finally, and most importantly, there will be a release of the FOMC Meeting Minutes at 7pm