Yesterday’s signals were not triggered, as none of the key levels were reached during the specified time session.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 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 1.3018.
- 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
- Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3185.
- 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
There are increasing 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 1.3185. At the time of writing, it looks likely that the price will rise today, and quite possible close above 1.3185. There is a medium-term bearish trend line a little higher than that price area, which can be seen in the chart below currently confluent with the round number at 1.3200. This confluence is more likely to hold the price than 1.3185.
Concerning the GBP, there will be a release of Manufacturing Production data at 9:30am London time. There is nothing due regarding the USD.