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 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 1.2842 or 1.2918.
- 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. Following a period of consolidation within an area below 1.2918, the price has made a renewed drop, taking out the pervious lows at about 1.2850 and printing new, lower resistance at 1.2842. Everything looks bearish and the Pound retains its position as the weakest of all the major currencies, with the price likely to eventually reach the nearest support level at 1.2756.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.