Yesterday’s signals were not triggered as the price never reached 1.3444.
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 bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3444.
- 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.
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 finally got the overdue bearish pull back yesterday, but the price has risen from its low and there was nothing unusual about the strength of the downwards movement considering that the overall volatility has been quite high.
The situation still looks bullish, but I have some concern over the area around 1.3540 possibly holding as resistance and pushing the price down again. If this happens, the price could continue down to 1.3444 or possibly even further.
I still maintain a bullish bias, as there is a strong long-term bullish trend, and the price is still making a sequence of higher highs and lows, with no key resistance levels above 1.3600 until 1.3750.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Building Permits at 1:30pm London time..