Yesterday’s signals were not triggered as neither of the price levels were ever reached.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken before 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 1.2842.
- 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.
Short Trade 1
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3016.
- Put the stop loss 1 pip above the local swing high.
- 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
The British Pound has firmed up over the past week or so, being bought as it approached its support level at 1.2842 after making a strong U-shape below that earlier. Trend lines can now be drawn that place recent price action into the shape of a rising wedge, confirming this. The short-term line of least resistance is less obviously bullish than it was yesterday, and we may have seen new resistance form just under 1.2940 which will hold the price down. Much will depend upon the result of upcoming British Services PMI data, as the service sector is very crucial to the British economy.
Technically, there is still a long-term bullish trend, and a break above 1.3016 would probably put new life into it, but I see this as unlikely to happen today.
There is nothing due today concerning the USD. Regarding the GBP, there will be a release of Services PMI data at 9:30am London time.