Yesterday’s signals produced a very successful long trade following the bullish candle rejecting the support level at 1.2550. It would probably be an excellent idea to take profits now.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2788 or 1.2739.
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 1.2850 or 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 had a very exciting and important day yesterday, as the British government announced it will be holding an early election, which had the effect of strengthening the Pound considerably and causing this pair to break out strongly from a very long-term consolidating triangle formation. Several resistance levels were destroyed, with the advance not ceasing before 1.2850. The outlook is very bullish and this pair is now in even more of a long-term bullish trend.
There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.