Yesterday’s signals were not triggered as neither of the key levels have been reached yet.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2610.
- 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 1.2831.
- 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
In line with the general rise in the U.S. Dollar yesterday, this pair fell, as seemed logical because it was close to resistance and a round number at 1.2800. There is negative sentiment about the U.K. which has weakened the Pound, with Brexit negotiations, a minority Government, multiple terror attacks, and a new survey showing the U.K. has become less attractive to foreign investors. The price is now in an area where is has shown some resilience, below 1.2750, and there is a succession of higher lows in place which may cause the price to rise now over the short term.
There is nothing due today concerning either the USD. Regarding the GBP, the Governor of the Bank of England will be speaking at 8:30am London time.