Yesterday’s signals were not triggered, as neither of the key levels give were ever reached.
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 very strong bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3344.
- 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 1.3465.
- Place the stop loss 1 pip above the local swing high.
- 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
While still in a strong, long-term bullish trend, this pair has been moving down along with everything else in the market against a resurgent U.S. Dollar. However, with key events coming up today for both currencies, this pattern may break. The chart below shows the price is being held by a supportive area, and is threatening to break bullishly above a very clear medium-term bearish trend line which has suppressed the price over the past few days. If this breaks with momentum, we should see a rise to at least 1.3465 as stops are uncovered.
Concerning the GBP, the Governor of the Bank of England will be speaking at 9:15am London time. Regarding the USD, there will be a release of Final GDP and Unemployment Claims data at 1:30pm.