Last Thursday’s signals were not triggered as the bullish price action took place a little below 1.2508.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm London time today.
Long Trades
• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2550 or 1.2521.
• 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 1.2610.
• 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
This pair remains one of the more interesting pairs in the market, as it is in a clear (though slight) upwards trend, and is poised to possibly break up out of a long-term, post-hard Brexit consolidating triangle, which is essentially bounded by the key horizontal resistance level at 1.2610.
The outlook is bullish, and it seems as if the London open will make an attempt at that resistance level, which could be pivotal either way.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Building Permits data at 1:30pm London time.