Last Wednesday’s signals produced a profitable long trade following the bullish pin candles rejecting the support level at 1.3178, with the trade giving a maximum profit of about 50 pips before reversing and hitting the stop loss.
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 1.3124.
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 1.3344.
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 is at the heart of the market lately, at least as measured by volatility. After a sharp drop within the context of a long-term bullish trend, last week saw a reasonably strong comeback, but the bulls could not crack the resistance level above at 1.3344. It looks as if the price is going to have to fall further before it might rise again, with potential minor support at the key psychological level of 1.3250.
It is likely to be a relatively quiet trading day, in the absence of any major scheduled news items.
There is nothing significant due today concerning either the GBP or the USD.