Yesterday’s signals were not triggered, as there was no bearish price action at 1.3226.
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 1.3222 or 1.3132.
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
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch 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 is in a long-term bullish trend, and keeps finding key support above the psychologically crucial 1.3000 level. In fact, yesterday it flipped resistance at 1.3226 to new support at 1.3222. It is in no big hurry to rise, but over the medium-term is gently rising in a clear bullish channel. There is every reason, technically, to take a bullish bias. However, today and tomorrow bring major events which will affect the Pound in the shape of testimony from its central bank and economic decisions from its Government, and these are likely to create volatility and unpredictable movements. The best that can be said is that “accidents happen along the line of least resistance”, so if you are going to take a gamble, a long trade is likely to have greater total potential than a short trade.
Concerning the GBP, the Bank of England’s top officials will be testifying at Parliament’s Inflation Report Hearings at 10am London time. Regarding the USD, the Chair of the Federal Reserve Janet Yellen will be speaking at a panel discussion at 11pm.