Yesterday’s signals were not triggered as neither of the key levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken 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 1.2850.
- 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 1.3000.
- 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 remains in a long-term bullish trend but is still finding it difficult to rise, although it is strongly supported below at 1.2850. The medium-term picture shows a bullish breakout from the new consolidating triangle, which I had thought was the more likely outcome. A sudden spike up to 1.3000 or the area just underneath that price could be an excellent short, as there is strong long-term selling up there, and it is unlikely to break easily. The 1.3000 level has not even been touched so there should be plenty of limit sell orders sitting there.
It is significant that at a time when almost everything else is rising against the U.S. Dollar, the British Pound is only rising a little. This suggests that were the U.S. Dollar to recover sharply, this pair would fall sharply.
A strong break above 1.3000 would be a very bullish sign.
Concerning the GBP, there will be a release of Retail Sales data at 9:30am London time. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.