Yesterday’s signals were not triggered as none of the key levels were reached during that session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2946 or 1.2859.
- 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 Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3074.
- 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 price was unable to hold up above the key psychological level at 1.3000, forming a double top there and subsequently falling. The price has reached very close to the nearest level of anticipated support, at 1.2919. Despite the double top above 1.3000, there is no reason to assume that the long and medium-term bullish trends are over, as the current rhythm is suggestive of a pullback, rather than a trend reversal.
Concerning the GBP, there will be a release of Construction PMI data at 9:30am London time. There is nothing due today regarding the USD, it is a public holiday in the U.S.A.