Last Wednesday’s signals were not triggered as the bearish price action took place a little way above the resistance level identified at 1.2850.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 1pm 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 1.2850.
- 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 Trades
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3000.
- 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
The pair has continued to move upwards over recent days, finally breaking bullishly out of its range which was bounded by 1.2772 and 1.2850. The action has been a little choppy, and it feels as if a deeper bearish pull back is about to happen, although the late Asian session has seen the nearest support level at 1.2903 continue to hold, and it might hold for the rest of the day. However, the next support level at 1.2850 looks to be a better prospect. Above the resistance level at the large whole number of 1.3000 could be important if reached.
There is nothing due today regarding the GBP, as today is a public holiday in the United Kingdom. Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, preceded by a minor speech from the Treasury Secretary at 12:45pm.