Yesterday’s signals were not triggered as none of the key levels were ever reached.
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
I predicted yesterday that the price would probably move sideways today and it really has been extremely flat, going nowhere. The Pound has been one of the weakest currencies recently, even weaker than the generally weak U.S. Dollar. The price should get some direction when British Retail Sales data is released during the early part of the London session. I see the cluster of resistance levels above 1.3117 as likely to provide strong resistance, so a fast move up to this area followed by a failure to rise higher could provide an excellent short trade entry. There is also minor resistance at 1.3050.
Concerning the GBP, there will be a release of Retail Sales data at 9:30am London time. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm.