Yesterday’s signals were not triggered as there was no bearish price action at 1.3016.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Long Trade 1
- Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3012.
- 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 1.3061.
- 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
This pair has been more bullish lately, but it was surprising yesterday to see it break up above the strong resistance confluent with the psychologically key round number at 1.3000. If the price can now remain above this area and even advance further, it will be a very bullish sign for this pair, after a long period where the British Pound was the weakest of all major currencies. However, it is rare for the British Pound to make very sustained moves, so it is unlikely the price is going to get above recent highs around the 1.3200 area. For the short term, I maintain a bullish bias.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.