Yesterday’s signals produced a losing long trade following the bearish rejection by an inside candle of the resistance level identified at 1.2508.
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 1.2508.
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 Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 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 been threatening to make a bullish move for a while, and yesterday it finally made that meaningful bullish breakout when the U.S. Dollar fell rapidly. In fact, the British Pound has been looking like one of the strongest of all the major currencies recently, and this pair is now in a long-term bullish trend, with its price above the levels of both 3 and 6 months previously. The price has become established above 1.2508, which is significant, and it will be even more significant if the price can break up above the 1.2610 area, where there is a very long-term bearish trend line which has held almost all the price action since Brexit.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time, followed by Preliminary UoM Consumer Sentiment number at 3pm.