Last Thursday’s signals were not triggered as none of the key levels were reached during that day’s session. However, it is notable how the nearest levels have both held since then.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trades
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2950 or 1.2918.
- 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 1.3016 or 1.3061.
- 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 Pound is still weak and bearish, yet the support level at 1.2950 is very strong and therefore we are seeing the price stuck between 1.3016 and 1.2950. I think it is most likely that 1.2950 will hold until the FOMC release which is due during Wednesday’s New York session, unless there is a surprise in tomorrow’s British CPI data release. This suggests that in the meantime, rejections of either level will be high-probability trades. There will probably be greater long-term potential from short trades than long trades.
There is nothing due today concerning either the GBP or the USD.