Last Wednesday’s signals were not triggered as there was no bearish price action at 1.3542.
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 is the standout trend in the Forex market, having risen by several percentage points over the past few weeks alone. One of the reasons why the Pound has been strong, has been due to a growing expectation that the British government would start aiming for a softer Brexit, and this came to a head at the end of last week as the British government clarified its position, which was a compromise and so led to a sell-off when Moody’s downgraded Britain’s long-term issuer rating.
However, the long-term bullish trend is now reasserting itself, particularly as the Euro is weakening, and it looks as though there is soon going to be another attempt to break up above 1.3600 which has acted as a cap on the price during recent days.
There is nothing important due today concerning either the GBP or the USD.