Last Thursday’s signals were not triggered as none of the key levels were ever reached during that session.
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
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2859.
- Place 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 the bearish trend line currently sitting at about 1.2960.
- Place 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 price has become established in a bearish channel, as shown in the chart below, but is in an unusual position, as the lower trend line within the channel is a long-term broken bearish trend line. This suggests that there is an underlying, longer-term bullish situation, but there is something which is keeping the Pound down. The level at 1.2900 was looking like resistance but does not seem to be holding, so should probably be ignored today. This leaves us with the bearish channel to work with. As we have some confluence at 1.2859, a long trade following a fall and bullish bounce there could be an excellent trade entry. Alternative, a failure at the upper trend line could be a good short trade. Over the very short-term, upwards movement looks like the more likely outcome.
There is nothing due today concerning either the GBP or the USD.