Yesterday’s signals were not triggered, as the price did not reach any of the key levels yet.
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 1.3279 or 1.3221.
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 1.3459.
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 bullish movement initially continued yesterday, with the price making new highs, before selling off towards the end of the London session. The price is now threatening to break below its medium-term bullish linear regression channel shown in the chart below, but the support at 1.3315 is still holding so I do not see the bearish break as valid yet. If the price does not rise from here today, that is a sign that we will probably see a deeper pull back, to at least 1.3279. Even if the deeper pull back comes, I would still initially maintain a bullish bias due to the long-term bullish trend.
Concerning the GBP, the Governor of the Bank of England will be speaking about the Bank Stress Test Results of 9am at 9:30am London time. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm, while the new designated Chair of the Federal Reserve will be testifying before Congress at the same time. The U.S. Treasury Secretary will be giving a minor presentation at 8:45pm.