Last Thursday’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 may only be entered between 8am and 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 1.2756.
- 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 1.2918 or 1.2950.
- 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
Recent weeks have shown a clear pattern: a fall in price, new resistance above holding the price down, a consolidation, another drop, and on and on. The price now continues to consolidate in an area below 1.2918. A retest of that level would probably provide an excellent short trade entry. The long-term bullish trend is over and the British Pound is currently the weakest of all major currencies. A renewed drop, all the way down to the 1.2750 area, looks likely upon any serious renewal in U.S. Dollar strength
There is nothing due today concerning either the GBP or the USD.