Yesterday’s signals were not triggered, as none of the specified levels were hit during the session times.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trades
· Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3125 or 1.3094.
· 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 Trades
· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3226 or 1.3344.
· 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
This pair remains at the heart of the market, as measured by volatility. I wrote yesterday that the level to watch as the best indicator of a short to medium-term trend change from bearish to bullish looks like being 1.3226: if the price can get established above there, further upwards movement would be likely. If the price fails there, it will probably take another trip down to 1.3125. This turned out to be a helpful approach, as we see early indications that the price has now made a triple top at the 1.3226 level, and if this structure holds, it will suggest that today will be a bearish day, with more gains for the USD and no news scheduled which might change sentiment. The recent bullish movement has shown there is still a bid and a long-term bullish trend in the GBP; this is expressed in the chart as the new flipped resistance to support level at 1.3162 where we could see a bullish reversal later.
There is nothing significant due today concerning either the GBP or the USD.