Yesterday’s signals were not triggered as there was no bearish price action at 1.3178.
Today’s GBP/USD Signals
Risk 0.75% per trade.
Trades may only be entered 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 1.3132 or 1.3018.
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 1.3226.
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
The ranging consolidation between 1.3100 and 1.3200 continues, and the ranging action is now so messy and relatively narrow that is has become difficult to trade. It looks clear that the breakout trade is the only way to go, although you could fade the trend lines on the very low time frame charts perhaps. The only exception would be if there was a good and tight bullish turn at 1.3132 which is a very clear support level.
The price is still within a consolidating triangle and the supportive trend line joining the lows is looking more likely to produce an eventual bullish breakout than a bearish breakdown. This would be in line with the long-term trend, which is still bullish. However, another failure to exceed 1.3226 could trigger another strong bearish movement. A break above that level, conversely, would be a bullish sign.
I have a slight bullish bias.
Concerning the GBP, the Governor of the Bank of England will be speaking all day and his remarks could affect the Pound. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.