Last Thursday’s signals produced a profitable long trade following the very bullish price action which decisively rejected the support level at 1.3165. It would make sense to take all or partial profit now as the price has seemed unable to rise above 1.3600 for some time.
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 1.3444.
- 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.
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
This pair rose extremely strongly last week, in line with the long-term bullish trend, boosted by higher than expected U.K. inflation data and a more hawkish tone from the Bank of England, which is now seen as more likely to raise interest rates sooner than had been expected. The price is now at levels not seen since the day after Britain voted to leave the European Union, and looks quite likely to rise even further. However, the short-term outlook is suggesting a bearish pull-back, as the price keeps failing to get established above the round number at 1.3600.
There is nothing due today concerning either the GBP or the USD.