Last Thursday’s signals were not triggered as the bullish price action took place a little way below 1.2861.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2930 or 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 wrote last Thursday that the area around 1.2850 would probably hold as good support and so it has proved to be, with the price poised to continue its upwards movement after undergoing a healthy correction. There is a good long-term bullish trend, pointing to still higher prices within the near future. The major obstacle is the large whole number at 1.3000 which bulls will have to overcome.
There is nothing due today concerning either the GBP or the USD.