Yesterday’s signals were not triggered as there was no bearish price action at 1.3167.
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 1.3167.
- 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 1.3240, 1.3304, or 1.3344.
- 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
Like the EUR/USD currency pair with which it is highly positively correlated, this pair is in a strongly bullish trend. After consolidating during the London session in the absence of any scheduled news, a while after New York opened we saw the price take off and make a new 10-month high, breaking up past the resistance level of 1.3167 in the process. This is a bullish sign, although it looks as if this same level will now be tested from above following a bearish pull back. If it holds and acts as support, the price should continue with another upwards movement today. Alternatively, another early failure at 1.3240 could provide a quick short trade down to 1.3167, although long trades must have better odds of profitability in the current trend environment.
Concerning the GBP, there will be a release of Manufacturing PMI data at 9:30am London time. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm.