Yesterday’s signals were not triggered as there was no bullish price action at 1.2930, and the price never quite reached the level at 1.2900.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered 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 1.2900.
- 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 1.3000.
- 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
I was expecting a meaningful pull back within the long-term bullish trend, and this is what happened yesterday, with the pair coming close to the whole number of 1.2900 and touching the broken short-term bearish trend line shown in the chart below, before resuming the bullish move. This has been a little choppy on the way up, but is normal enough for bulls to feel confident of another attempt at the highs today. Despite the bullishness, the resistance at 1.3000 may hold, at least over the short-term.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.