Yesterday’s signals were not triggered as the bullish price action took place a little below the support level identified at 1.2979.
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 1.2943.
- 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 1.3075.
- 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 has now failed to get established above the key psychological level of 1.3000 and has formed a bearish triple top at about 1.3040. The market is dominated today by a risk-off sentiment and news of a terrorist attack in the U.K., which suggests the price will sink down to the next support level at about 1.2950 over the short term at least
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There is nothing due regarding the USD. Concerning the GBP, there will be Inflation Report Hearings at 10am London time.