Yesterday’s signals were not triggered as the bullish price action took place a little below the support level identified at 1.2610.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2610, 1.2550 or 1.2521.
· Put 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 1.2756.
· Put 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
Just before the London open, this pair looks set to rise during the early part of the London session, but faces strong resistance at the confluence of a bearish trend line, a psychological number, and a key resistance level close to 1.2750, which is likely to cap any rise at least for a while.
There is some buying of the Pound following the Bank of England’s Chief Economist speaking publicly in favour of a rate hike in the foreseeable future. Bids were also uncovered by the brief dip into a key zone of support below 1.2610.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.