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 Trades
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2756 or 1.2705.
- 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 1.2842.
- 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
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 made a renewed drop earlier this week, taking out the pervious lows at about 1.2850 and printing new, lower resistance at 1.2842. This level has also held, in fact has not even been tested Everything looks bearish and the Pound retains its position as the weakest of all the major currencies, with the price likely to shortly reach the nearest support level at 1.2756. This could be an important level due to its confluence with the psychologically important number of 1.2750.
Concerning the GBP, there will be a release of Second Estimate GDP data at 9:30am London time. Regarding the USD, there will be a release of Unemployment Claims data.