By: DailyForex
Yesterday’s signal was not triggered as the key level was not reached during the specified session time.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm London time today only.
Long Trade 1
- Go long following a very strong bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3344.
- 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
- Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3465.
- 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.
- Take off 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
The U.S. Dollar has been advancing almost everywhere, and continues to do so. It is now gaining especially strongly against the Euro and the British Pound. The Pound had been holding up but now is being sold strongly. There is still a clear long-term bullish trend in force, but the medium-term outlook is looking bearish since 1.3444 broke down. Nevertheless, the price is sitting right on a supportive level at 1.3372, so it is possible the low of the day has already been made. I maintain a cautious bearish bias. One of the most bearish signs on the chart is the broad, distributive top at or near the highs of the 1.3600 area.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time, followed by Crude Oil Inventories at 3pm.