Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3226, and insufficiently bullish price action at 1.3164.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm London time today.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3102.
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 1.3162.
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 remains at the heart of the market, as measured by volatility. We saw a sharp fall last Thursday, followed by a recovery that was not especially strong, but it shows that there is still some life in the long-term bullish trend. The next test of the level at 1.3162 will probably be crucial for this pair’s medium-term direction. The British Pound is looking significantly stronger than the Euro, so if the Dollar takes a hit there could be a strong rise in this pair.
Technically, there is now a clear but very wide bearish price channel, marked by the downwards sloping trend lines which can be seen in the chart below. It would be a long way from the trend line, but I would be cautiously bullish above 1.3162. At the time of writing as we approached the London open, it looks as if the price is readying for a new thrust down.
There is nothing due today concerning either the GBP or the USD.