Yesterday’s signals were not triggered, as there was no bearish price action at either 1.3162 or 1.3226.
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 1.3226 or 1.3164.
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 H1 time frame immediately upon the next touch of 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. The price rose strongly after initially falling, following the release of stronger than expected UK GDP data. Resistance was broken cleanly. The price seems to have topped out in a natural retracing way during the Asian session, and is falling as London opens, but it looks as if we are likely to get a bullish bounce as the price gets closer and closer to 1.3226.
This pair is in a long-term bullish trend. The focus is now shifting towards the U.S. Dollar, and if it continues to weaken, this pair should benefit most strongly and continue to rise.
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.