Last Thursday’s signals were not triggered as there was no bullish price action when the price reached 1.3114.
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 1.3061.
- 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 1.3167.
- 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
The British Pound has regained some strength, being one of the strongest risers last week against the U.S. Dollar and printing a new 10-month high price.
It now seems as if the upwards move might be running out of steam and beginning a period of consolidation or deeper pullback. We have the beginning of a double top formation at about 1.1760. The price is supported by several bullish trend lines, which are confluent with the nearest key horizontal support level at 1.3061.
There is nothing due today concerning the GBP or the USD.