Yesterday’s signals were not triggered, as none of the key levels were ever reached during the specified session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken only between 8am and 5pm London time today.
Long Trade 1
- Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3061.
- 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 Trades
- Go short following a very strong bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3240 or 1.3304.
- 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
Although the U.S. Dollar has advanced almost everywhere over the past 24 hours, it has made least progress against the British Pound. This suggests that when the Dollar strength ends or erodes temporarily, the British Pound will be well placed to rise against it, so higher prices here look likely, although if the British data release later is surprising, the price might go anywhere. The pair is in a long-term bullish trend and rose quite strongly last week, and the price has still not broken below a single key support level during this move. I am nervous of the nearest support so I would look lower, to 1.3061. As for taking shorts at bounces off resistance above, be very careful and make sure it is only after a very strong reversal, something like a double top with a failed breakout.
There is nothing due today concerning the USD. Regarding the GBP, there will be a release of U.K. CPI data at 9:30am London time.