Yesterday’s signals were not triggered as there was no bearish price action when the price reached 1.2950.
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 1.2916.
- 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 Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3016.
- 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
There was a strong move against the U.S. Dollar during the early part of yesterday, which the British Pound also benefited from, sending the price of this pair up above the former resistance level at 1.2950. However, this pair is really not in focus in the market at the moment, its volatility is quite low, and there is little buying enthusiasm for the British Pound. Although the way now looks clear for a larger move up to the 1.3000 area, and although there is still technically a weak long-term bullish trend, there will almost certainly be better opportunities in the EUR/USD and USD/JPY currency pairs during the rest of this week at least.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Preliminary GDP data 15 minutes later, and then finally Crude Oil Inventories numbers at 3:30pm.