Yesterday’s signals may have produced a long trade yesterday following the doji candlestick rejecting the support level identified at 1.2859.
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 1.2756.
- 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 Trades
- Go short 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 1.2945 or 1.2909.
- 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
The price did very little yesterday, which is not surprising as it was a Monday and there was no high-impact news scheduled for either currency. The price is threatening to break below the lower trend line of its bearish channel, as shown in the chart below, with everything now depending upon whether the horizontal support level at 1.2859 holds. The other change is to move the nearest resistance level up by a few pips to 1.2909, which has become more relevant. Over the very short-term, downwards movement looks like the more likely outcome.
There is nothing due today concerning either the GBP or the USD.