Last Monday’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 entered 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 1.2861.
- 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
The pair remains within a long-term bullish trend, and is undergoing a deep pull-back which has broken the former support close to the 1.2900 level. The level below that at 1.2850 still looks likely to be good support. The price was unable to reach the key level of 1.3000 and put in a major lower high below that, forming the start of a bearish trend line shown in the chart below. The bullish case is strengthened by the fact that the USD has been strong, and the GBP has continued to look good against other, weaker currencies, suggesting that if the USD strength ends we would be likely to see new highs here. Much will depend upon the Non-Farm Payrolls numbers which will be released tomorrow.
Regarding the GBP, there will be a release of Services PMI data at 9:30am London time. Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm.