By: DailyForex
Last Wednesday’s signals were not triggered, as none of the key levels were reached during the specified session, although the high of the day was made only 4 pips below the resistance given at 1.3296.
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 bullish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3018.
- 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
- Short entry following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.3167.
- 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
For the past two or three weeks, the British Pound has been the weakest of all the major currencies. That has been expressed by steady falls in this pair, with few pull-backs. However, there are some initial signs that a meaningful bullish pull-back may have started, with a bullish “V” formation taking shape not far above the psychologically important round number at 1.3000 and a key support level at 1.3018. The first significant test of the strength of this pull-back, if it continues, is likely to come at the resistance level of 1.3167. For the time being, I think there is still likely to be a greater opportunity on the bearish side.
It is likely to be a quiet trading day today, as there is no high-impact news scheduled, and it is also a public holiday in the U.S.A. However, there are political discussions going on in the U.K. which could lead to an announcement from the Government which would probably affect the Pound.
There is nothing significant due today concerning either the GBP or the USD. It is a public holiday in the U.S.A.