Last Thursday’s signals were not triggered as the bullish price action took place a little way below the support level identified at 1.2950.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2950 or 1.2918.
- 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 Trades
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3117, 1.3136, or 1.3167.
- 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
We had another dip down to an area of support which begins at about 1.2950, and a move up following that, yet it can be seen the price struggles to remain above 1.3000. The Pound generally feels weak, although as the U.S. Dollar is also week, the pair struggles to go anywhere. For the time being, the price is likely to continue to range, with another test of 1.2950 more likely before a retest of 1.3117. There is no true trend here at all.
There is nothing due today concerning either the GBP or the USD.