Last Thursday’s signals were not triggered as there was insufficiently bearish price action at 1.3100.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 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 1.3167.
- 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 1.3240 or 1.3304.
- 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
The Pound ended the week dominating the Forex market, although the Yen made the biggest gain of all the majors against the greenback over the week. While the Euro and Yen sold off on Friday, the pull back here has been quite shallow, and so far, the support level at 1.3167. Although there is no news scheduled today so trading is likely to be quiet, I have a bullish bias on this pair. If the price can reach 1.3300, it will be a new 1-year high, which would be a very bullish sign, but it would not be a great surprise if the price cannot get above this level, even though it is in a long-term bullish trend.
There is nothing due today concerning either the GBP or the USD