Yesterday’s signals were not triggered, as the price never reached 1.3444.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm London time today.
Protect any open trade by 6:30pm.
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.
Short Trade 1
- Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3542.
- Place the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the price reaches 20 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 has had the strongest long-term trend, but made a bearish pull back in recent days. Looking at the chart, the bullish rhythm has not yet been interrupted. The only bearish sign is the new lower resistance level which has printed at 1.3542. This might hold, but the action of recent hours is more suggestive of an upwards movement coming soon, with the price bunching bullishly just below the resistance at 1.3542. There is key British data this morning, do the price could make a significant movement even before the FOMC release due later when New York comes online. This later release could have a dramatic impact upon the price, which could then go anywhere.
Concerning the GBP, there will be a release of Retail Sales data at 9:30am London time. Regarding the USD, there will be a release of the FOMC Statement, Projections, and Federal Funds Rate at 7pm, followed by the usual press conference. There will also be a release of Crude Oil Inventories earlier at 3:30pm.