Yesterday’s signals were not triggered, as there was no bearish price action at either 1.3226 or 1.3250.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades must be entered 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 1.3226.
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 Trades
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
Yesterday’s action was a little surprising, as there was seemingly strong resistance centred on the 1.3250 area. However, the price managed to break above this area quite easily, and continue to rise. The action still looks healthily bullish. The Pound is one of the relatively stronger currencies. There is a long-term bullish trend. These facts all point to still higher prices, and the price has some way to go before it would hit the next resistance level at 1.3344.
There is a lot of data due for both currencies in this pair today, which could accentuate the trend or possibly reverse it. This pair is likely to be at the heart of the market today.
Concerning the GBP, there will be a release of Manufacturing PMI data at 10:30am London time. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm, followed by ISM Manufacturing PMI data at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement at 7pm.