Yesterday’s signals were not triggered as there was no bearish price action at 1.3061.
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 1.3012.
- 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 1.3100.
- 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 Pound has continued its bullish movement, breaking above and obliterating the former resistance level at 1.3061. The pair is in a long-term bullish trend, and the Pound has been boosted by recent British economic data which has been more positive than expected. However, despite the trend, it should be remembered that 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, though. A break above 1.3100 would be a very bullish sign, but if the price gets back below 1.3000 and stays there for any meaningful length of time, the outlook will not look good for bulls.
There is nothing due today concerning the GBP. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories at 3pm.