Last Thursday’s signals were not triggered as the bearish price action took place above the key level identified at 1.3240.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered from 8am to 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 1.2950.
- 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 1.3061 or 1.3100.
- 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
T89+6his pair’s bullish trend was hit very hard at the end of last week by two developments: firstly, the Bank of England’s reduction of its growth forecast concerning the British economy, then by the stronger than expect NFP data from the U.S. This pair now looks weaker than any other major currency against the Dollar, and this is more to do with the relative weakness of the British Pound than anything else. The price is still technically in a long-term bullish trend, but it looks to be in serious doubt. A break below 1.2950 would be a very bearish development, yet an upwards push to some level before that could happen is likely.
There is nothing due today concerning either the GBP or the USD.