Last Thursday’s signals were not triggered as none of the key levels were 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 1.2842.
- 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
Trading in this pair is likely to be very light today as it is a public holiday in the U.K. and the British Pound is heavily centred on this market session. Technically, the most interesting feature is the U-shaped bottom at about 1.2780 which has produced an upward movement. The week opened with a gap up just above the nearest resistance level at 1.2918, from where the price quickly fell to close the gap during the Asian session. I am certain the level will hold if reached again today, but that is unlikely to happen. Any good opportunities in the Forex market today will probably be in other currency pairs.
There is nothing due today concerning either the GBP or the USD.