Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3226.
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 1.3018.
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 1.3128 or 1.3166.
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 fell strongly last Thursday upon the “dovish rate hike” by the Bank of England. Although the Bank raised the interest rate by 0.25% to 0.50%, its guidance suggested that the pace of future hikes would be slower than the market consensus had been anticipating, which prompted the market to take a more long-term bearish view of the Pound. The recent swing lows have been taken out by the price action, but the price is now approaching an important psychological area even though there is clearly a bearish pattern of action and new lower resistance. This area of support close to 1.3000 could prompt some long-term buying and will be a key test for this pair. However, any long trades today are probably going to be brave long shots, and I think it more likely than any significant rise following the London open will probably sell off as it gets above 1.3100.
There is nothing due today concerning either the GBP or the USD.