Yesterday’s signals were not triggered as there was no bullish price action when the price reached 1.2910.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2831.
- 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 1.2928.
- 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
At the start of yesterday’s London session, the price attempted to break above the resistant structure under 1.2928, but failed. The chart below shows a conflicted technical picture: there is a long-term triangle with a bearish upper trend line keeping the price below 1.2928, but the price is also established in a shorter-term bullish channel, and the price will soon have to decide to break one or the other.
It is logical for the price to consolidate ahead of the British election tomorrow, so major support and resistance levels are likely to hold until the first exit poll is released at 10pm London time tomorrow. The election result should produce a fast directional move of at least 200 pips
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.