Yesterday’s signals were not triggered as there was no bullish price action at 1.3075.
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 1.2950.
- 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 1.3117, 1.3136, or 1.3167.
- 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 anticipated support level at 1.3075 did not hold and has been erased from the chart, with the next natural level of support likely to be at the good half-number of 1.2950. This currency pair is in an upwards trend yet is markedly weaker than its positively correlated EUR/USD currency pair, meaning there is probably little real strength in the British Pound. British inflation data will be released very soon and if this is higher than expected, should send the price up strongly. This could provide a good short trade entry if the result is a spike up to one of the resistance levels not far above. As we have a cluster of levels above 1.3117, it is likely to be an area that will be difficult for the price to break.
There is nothing due today concerning the USD. Regarding the GBP, there will be a release of CPI data at 9:30am London time, followed by the Governor of the Bank of England speaking at 2:30pm.