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 may only be taken between 8am and 5pm London time today.
Long Trade 1
* Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2374.
* 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 Trade 1
* Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2508.
* 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
I wrote yesterday that “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.” This is what happened, although there is also a trend line above forming a consolidating triangle, as shown in the chart below. We await a breakout and it might well not come until the Non-Farm Payrolls number tomorrow. I think the bulls still have a slight edge and if that number is disappointing, the bullish breakout could be quite strong.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Unemployment Claims data 1:30pm London time.