Last Thursday’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 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 1.2946.
- 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 1.3074.
- 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 bullishness has continued in this pair, with the Pound also being boosted by a bullish Euro, as well as by the new hawkish line that seems to be coming from the Bank of England regarding a rate hike in the foreseeable future. The price has held up above 1.2950 although it has struggled to get established above 1.3000. If it can stay above 1.3000 it will be a bullish sign. The long-term trend is certainly bullish but there may not be much more upside in the near future, following the double top at 1.3025.
Concerning the GBP, there will be a release of Manufacturing PMI data at 9:30am London time, followed by the Governor of the Bank of England speaking at 1pm. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm.