Yesterday’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 must be taken before 5pm London time today only.
Long Trade 1
· Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2950.
· 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 Trades
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3061 or 1.3100.
· 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 fact that the resistance at 1.3061, although never quite reached to the pip, has clearly held and exerted some downwards pressure, reinforces the bearish case. The pair is in a long-term bullish trend, but the Pound is looking weak. A continued fall to 1.2950 seems the most likely short-term outcome, then what happens if that level is reached will tell us something about medium-term probabilities.
A break above 1.3061 will be mildly bullish, while a break above 1.3100 would be significantly more seriously bullish.
There is nothing due today concerning either the GBP or the USD.