Yesterday’s signals were not triggered as the bullish price action took place a little way below the support level identified at 1.2943.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken 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 1.2928 or 1.2910.
- 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 again for yet another day failed to get established above the key psychological level of 1.3000 and the bearish triple top at about 1.3040 survives. The longer the price is unable to stay above 1.3000, the greater the likelihood of a move as far down as 1.2850 or even lower. However, the trend lines drawn in the chart below are looking increasingly important, and due to long-term bullish trend they are still suggesting an eventual bullish breakout is the more likely scenario.
Concerning the GBP, there will be a release of Second Estimate GDP data at 9:30am London time. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.